Dominion Income Trust 1 Raises $45M to Boost Portfolio and Liquidity
Dominion Income Trust 1 (ASX – DN1) has announced a $45 million placement at $101 per unit, aiming to enhance fund diversification and liquidity without impacting net asset value.
- Non-underwritten placement of up to 450,000 new units at $101 each
- Placement price set at a 0.57% discount to last closing price
- Proceeds to be invested in floating rate notes aligned with fund strategy
- Placement costs borne by Investment Manager, protecting unitholder NAV
- Trading of DN1 units halted and expected to resume on 6 June 2025
Placement Details and Pricing
Dominion Income Trust 1 (DN1) has announced a significant capital raising through a non-underwritten placement of up to 450,000 new units priced at $101 each. This placement, targeting wholesale investors, represents a modest 0.57% discount to the last closing price of $101.575 on 3 June 2025. The new units will rank equally with existing units, including entitlement to distributions from the issue date.
Strategic Use of Proceeds
The $45 million raised will be invested in floating rate notes consistent with DN1’s existing investment strategy. This approach aligns with the fund’s focus on credit and fixed income markets, managed by Dominion Investment Management Pty Ltd. The capital injection is expected to enhance the fund’s asset base, providing greater diversification across underlying assets and supporting the fund’s income generation objectives.
Impact on Unitholders and Market Liquidity
Importantly, all costs associated with the placement will be covered by the Investment Manager, ensuring that the net asset value (NAV) of DN1 remains unaffected. This cost structure is a clear benefit to existing unitholders. Additionally, the increase in units and investor participation is anticipated to improve daily liquidity on the ASX, making it easier for investors to trade DN1 units amid ongoing market volatility.
Placement Management and Timetable
The placement is managed by Equity Trustees as the Responsible Entity, with National Australia Bank and Morgans acting as Joint Lead Managers. Trading of DN1 units was halted on 4 June 2025 and is expected to recommence on 6 June 2025 following the announcement of placement results. Settlement and issuance of new units are scheduled for mid-June, with trading of the new units commencing shortly thereafter.
Looking Ahead
This capital raising reflects Dominion Income Trust 1’s proactive approach to managing its portfolio and investor base. By expanding its asset pool and enhancing liquidity, DN1 positions itself to better navigate market uncertainties and pursue diversified income opportunities. Investors will be watching closely to see how the additional capital translates into performance and whether further strategic initiatives follow.
Bottom Line?
DN1’s $45 million placement sets the stage for deeper diversification and improved liquidity, but execution risks remain as trading resumes.
Questions in the middle?
- How will the increased asset base affect DN1’s income distribution in the coming quarters?
- Will the non-underwritten nature of the placement impact investor confidence or pricing stability?
- Could this capital raise signal further strategic shifts or additional fundraisings ahead?
