Infrastructure investment company International Public Partnerships has announced that its placing on the London Stock Exchange has been three-times oversubscribed, as it raises £330m to help pay down its debt.
The £1.6bn investment trust, which invests in over 100 global public infrastructure projects, is currently trading at a 11.5 per cent premium, according to the AIC. It has returned 14.4 per cent over the last year compared to 9.1 per cent for the sector, according to FE.
The original targeted capital raised was £250m, but the additional demand was three times that and the board elected to issue the maximum new shares available under the initial issue.
Among existing shareholders there was a 93 per cent take up of the open offer and excess application facility.
The issuance of new ordinary shares at 150p, represents approximately a 9 per cent premium to the estimated (dividend adjusted) net asset value at 31 March, Killik & Co reports.
INPP chairman Rupert Dorey says: “The significant oversubscription of INPP’s latest capital raising demonstrates the continued demand for the company’s investment case, in providing shareholders with predictable, long-term and substantially inflation-linked returns from investment in long-term assets.”
Winterflood argues existing funds that have delivered on their target returns and maintained their premium ratings are finding it increasingly easier to raise additional capital and that this is particularly true for the Infrastructure sector.
In a research note, it argued IPOs are increasingly important for showing the health of the investment company sector, alongside the de facto measure of discount levels.
Dealings in the new shares are due to commence on 11 May.