N+1 Singer are delighted to have acted as Sponsor and Joint Corporate Broker to Hipgnosis Songs Fund Limited on their successful Fundraise of £75 million by way of the Initial Placing, Offer for Subscription and Intermediaries Offer.
The Company expects to use the net proceeds of the Initial Issue to acquire an attractive pipeline of Catalogues that The Family (Music) Limited has identified in line with the Company’s investment policy. The Pipeline Catalogues contain some of the most influential and successful songs of all time, and offer substantial revenue growth opportunities through Song management.
Merck Mercuriadis, Founder of Hipgnosis Songs Fund Limited, said:
“2020 was a transformational year for Hipgnosis. Against one of the most challenging economic backdrops of our lives, we raised more capital than any other listed investment fund, outperformed the FTSE 250 index by 21.5% and paid a fully covered dividend of over 5 pence per share, which places us as the 35th highest dividend yielding company on the FTSE 250. Whilst we would not have wished for a pandemic to prove our thesis that music is a highly investable asset class generating uncorrelated returns, it has done exactly that. In just over two years from IPO to our latest results announcement as at 30 September 2020, we have generated a Total NAV Return of 37.9% for our shareholders, a 40.4% outperformance of the FTSE 250 over the same period.
That momentum continues, and 2021 is off to our strongest start ever, with some of the most important catalogue acquisitions we have made to date being announced. The new prospectus underpins our plans for marketing into new audiences and fundraising for the rest of the year and I’m delighted with the excellent first step we have made with a successful raise of £75 million, over USD$100 million. Once again, I am incredibly appreciative of the support from both our existing and new shareholders and equally the incredible songwriters who have entrusted us with their iconic songs. We look forward to investing further into our pipeline of proven and culturally important songs and actively managing these incredible songs to enhance their legacy and maximise income as we seek to provide exceptional risk adjusted returns for shareholders. To top it off we have both the Number 1 and Number 2 airplay songs in the UK this week with Miley Cyrus featuring Dua Lipa and Justin Bieber respectively, both written by our songwriter Stefan Johnson.”
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 £1.1 billion (gross equity capital) through its Initial Public Offering on 11 July 2018, and subsequent issues in April 2019, August 2019, October 2019, July 2020, September 2020 and February 2021. 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, and in March 2020 became a constituent of the FTSE 250 Index.
Market Cap: £1.2 billion*
Website: Click here
*As at 05/02/2021
For more information on this news, please email us or call us on +44 (0)20 7496 3000.