The John Laing Infrastructure fund has raised gross proceeds of £270m after an initial public offering (IPO), making it the second largest raising of the year after Anthony Bolton’s Fidelity China Special Situations fund.
Some 270m ordinary shares were placed in the IPO, allowing the fund to acquire a seed portfolio of 19 operational, global infrastructure public finance initiative/public private partnership projects from John Laing or its subsidiaries.
The seed portfolio has been independently valued at £260m and on admission the company will have a net asset value of 98.1p per share. (article continues below)
The closed-ended fund targets an annual yield of 6% and an internal rate of return of 7-8%.
According to a statement, the placing and offer attracted strong demand from both retail and institutional investors, leading John Laing Investments to only subscribe for approximately 23.1% of the ordinary shares issued at launch.