Gryphon Capital Income Trust (ASX, GCI) has opened a non-underwritten unit purchase plan offering new units at A$2.00 each to eligible unitholders in Australia and New Zealand. The offer aims to raise up to A$337 million to support portfolio growth.
- Non-underwritten unit purchase plan open to existing eligible unitholders
- Offer price set at A$2.00 per new unit, a slight discount to recent market prices
- Maximum subscription capped at A$30,000 per unitholder
- Offer capped at 168.5 million new units to raise up to A$337 million
- Funds to support incremental portfolio management aligned with investment strategy
Offer Details and Eligibility
One Managed Investment Funds Limited, acting as the responsible entity for Gryphon Capital Income Trust (ASX – GCI), has officially opened a unit purchase plan (UPP) for existing unitholders registered as of 6 October 2025. Eligible unitholders residing in Australia and New Zealand can apply to purchase new units at a fixed price of A$2.00 each, with a minimum investment of A$1,000 and a maximum of A$30,000 per applicant.
The offer is non-underwritten and non-renounceable, meaning unitholders cannot transfer their entitlement to others. The total number of new units available under the plan is capped at 168,544,650, representing 30% of the units currently on issue, with a maximum capital raise of approximately A$337 million. The responsible entity retains discretion to scale back applications if demand exceeds the cap.
Pricing and Market Context
The offer price of A$2.00 per unit matches the price paid by wholesale investors in a recent placement announced in August 2025. This price represents a modest discount of around 2.8% to the volume weighted average price (VWAP) of the trust's units over the 5 and 30 trading days leading up to the record date. This slight discount is designed to incentivize participation while reflecting current market valuations.
New units issued under the plan will rank equally with existing units and are expected to commence trading on the ASX on 7 November 2025. Eligible unitholders who participate will also be entitled to the November 2025 distribution, payable in December, assuming they remain holders on the distribution record date.
Use of Funds and Strategic Implications
The capital raised through this offer will be deployed to support incremental portfolio management consistent with the trust’s existing investment strategy. Gryphon Capital Investments Pty Ltd, the investment manager and a Barings company, oversees a portfolio exceeding A$4.9 billion, leveraging Barings’ global platform to enhance fixed income investment strategies.
This capital injection is expected to provide the trust with enhanced flexibility to pursue investment opportunities and manage its portfolio more actively, potentially benefiting unitholders through improved income generation and risk management.
Participation Process and Timetable
Eligible unitholders can apply via BPAY or electronic funds transfer using personalised application forms accessible through the Boardroom investor portal. The offer opened on 14 October 2025 and will close at 5 – 00pm Sydney time on 30 October 2025. The responsible entity reserves the right to amend the timetable, including early closure or extension, subject to regulatory compliance.
Results of the offer, including any scale back, will be announced on 3 November 2025, with new units allotted on 6 November 2025. Holding statements will be dispatched, and trading on the ASX is expected to begin the following day.
Risks and Considerations
While participation is optional and brokerage-free, investors should be aware of risks including potential market price volatility between application and issue dates, and the possibility of scale back reducing allocations. The offer excludes U.S. persons due to regulatory restrictions, limiting the investor base to Australia and New Zealand.
Investors are advised to review the trust’s product disclosure statement, recent ASX announcements, and seek independent financial advice before participating.
Bottom Line?
As Gryphon Capital Income Trust embarks on this significant capital raise, investors will be watching closely to see how the fresh funds translate into portfolio growth and income stability.
Questions in the middle?
- How will the responsible entity determine scale back allocations if demand exceeds the offer cap?
- What specific portfolio opportunities will the new capital enable Gryphon to pursue?
- How might market volatility between application and issue dates impact investor returns?