N+1 Singer is delighted to have supported Hipgnosis Songs Fund Limited in a significantly oversubscribed equity issue raising aggregate proceeds of £236.4 million – the largest fundraise by a LSE listed investment trust since the COVID-19 lockdown.
As a result of significant demand from existing and new investors the Placing has been oversubscribed, exceeding the target amount of £200 million. Accordingly, the Board has resolved to increase the gross proceeds of the Issue to approximately £236.4 million, making it Hipgnosis’ biggest equity raise to date.
As the Investment Adviser, The Family (Music) Limited, is in active discussions on a pipeline of Catalogues with an acquisition value of over £1bn, the Company continues to expect to deploy the net proceeds of the Issue within three months.
The Placing has now closed and gross proceeds of approximately £233.4 million have been raised at a price of 100 pence per C Share pursuant to the Placing Programme described in the Prospectus published by the Company on 27 September 2019. In addition, further gross proceeds of approximately £3 million have been raised at a price of 100 pence per C Share pursuant to the PrimaryBid Offer.
Merck Mercuriadis, Founder of Hipgnosis Songs Fund Limited, said:
“Our mantra is that proven songs produce predictable and reliable income and are a highly investable uncorrelated asset class that can rival gold. I’m very grateful for the incomparable support we have had from our great institutional investors from day 1 and delighted that they are now, with us having become one of the biggest yielders on the FTSE 250, joined with significant participation from the retail sector.
This is our biggest fundraise to date, and the biggest fundraise by a LSE listed investment trust since the COVID-19 lockdown, which speaks volumes for the financial community’s recognition of Songs as an asset class. In line with our current performance we will do our utmost to continue to deliver strong results for our investors by buying extraordinarily successful proven songs by culturally important artists and managing them with great responsibility. At the same time we will use the influence of our great songs and financial wherewithal to bring reform to the way the songwriter is remunerated. The songwriter is unjustly at the bottom of the traditional music business economic equation, our intention is to take the songwriter to the top!”
About Hipgnosis Songs Fund Limited
Hipgnosis, which was founded by Merck Mercuriadis, is a Guernsey registered investment company established to offer investors a pure-play exposure to songs and associated musical intellectual property rights. The Company has raised a total of over £860 million (gross equity capital) through its Initial Public Offering on 11 July 2018, and subsequent issues in April 2019, August 2019, October 2019 and July 2020. In September 2019, Hipgnosis transferred its entire issued share capital to the Premium listing segment of the Official List of the FCA and to the London Stock Exchange’s Premium segment of the Main Market.
Market Cap: £748 million*
Website: Click here
*As at 10/07/2020
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