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(Alliance News) - Hipgnosis Songs Fund Ltd said Thursday it is planning a GBP200 million fundraising to aid further investment in its song portfolio.
Hipgnosis will look to place 200.0 million new C shares at 100 pence per share. Shares in Hipgnosis were trading marginally lower in London on Thursday morning at 115.98p each, giving it a market capitalisation of GBP714.3 million.
The music IP investment and song management company noted it will also launch a retail placing of C shares on PrimaryBid.
"The net proceeds of the Issue will be used to fund further acquisitions in line with the company's investment policy to create further value for shareholders. This is also expected to continue to increase the diversity of the portfolio and income streams," Hipgnosis said.
The firm expects to use the proceeds within the next three months.
Hipgnosis Founder Merck Mercuriadis said the capital raise provides the company with the opportunity to "continue growing".
He continued: "Having invested over USD1 billion dollars in some of the most extraordinarily successful songs of all time in the last 24 months, we are now a FTSE 250 company and the 58th biggest yielder on the index.
"This has firmly established songs as a new uncorrelated asset class. Our recent NAV results have demonstrated that our access combined with the growth of streaming, increased songwriter royalties thanks to the CRB ruling, our active management, efficiencies in collection and songwriters first strategy can deliver great uncorrelated returns for our shareholders even during the course of the pandemic."
By Paul McGowan; paulmcgowan@alliancenews.com
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