16th Jun 2016 12:03
LONDON (Alliance News) - Hadrian's Wall Secured Investments Ltd on Thursday said it raised less than intended in its initial public offering on the London Stock Exchange.
The company, which will invest primarily in UK commercial loans secured by assets such as equipment, plant and machinery, real estate and trade receivables, has letters of intent with originators of loans, including specialist lender Wellesley & Co, peer-to-peer lending platform Landbay Partners Ltd, and online platform FundingKnight.
The idea is to lend to smaller companies and fill a gap left by bigger lenders in the wake of the financial crisis of 2007-09. The letters of intent cover investment opportunities with a value of more than GBP500 million, according to Hadrian's Wall Secured Investments' prospectus
In a statement, Hadrian's Wall Secured Investments said it raised GBP80 million in an initial placing and offer for subscription. A total of 80.0 million shares were sold in the move at 100 pence each. Admission of the shares to the Main Market of the London Stock Exchange is expected on Monday.
Hadrian's Wall Secured Investments had intended to raise in excess of GBP150 million, according to a statement in May, which said up to GBP250 million in shares were on offer. Institutional investors and the wealth management and adviser communities bought shares in the IPO, the company said on Thursday.
According to the prospectus, Old Mutual Global Investors had intended to subscribe for up 50 million shares in the initial placing, so long as its holding didn't exceed 25% of the company. Paul Craig, a portfolio manager at Old Mutual Global Investors, is on the board as a non-executive director. The amount raised suggests Old Mutual Global Investors took no more than 20 million shares.
Once the money raised has been substantially invested, Hadrian's Wall Secured Investments will target an annualised dividend yield of at least 6.0% of the 100p issue price, which it expects to grow over time.
"In an environment which has not had an IPO of a main market-listed investment company in 2016, the board is extremely pleased with the support for Hadrian's Wall Secured Investments Ltd," Chairman David Warr said in a statement.
Hadrian's Wall Capital Ltd, a specialist in advising on debt investments, will manage the investments of Hadrian's Wall Secured Investments. It is part of Hadrian's Wall Capital AG, which was formed in 2010 by Marc Bajer.
Bajer worked in Morgan Stanley's fixed income division in 1986, joined Bear Stearns 10 years later, and then moved to Barclays Capital in 1998. In 2000, he joined Commerzbank Securities, before becoming chief executive officer of Assured Guaranty UK Ltd.
Hadrian's Wall Secured Investments said that Bajer's division originated over USD20 billion of credit risk assets from 2005 to 2009 onto the Assured Guaranty balance sheet, "none of which suffered losses during the credit crisis".
International Fund Management Ltd, part of Channel Islands-based PraxisIFM Group, is the investment manager, and will delegate management to Hadrian's Wall Capital.
"We have been, and continue to be, in dialogue with a diverse range of loan originators in order to enable the Company to efficiently and promptly deploy the IPO proceeds. It is our intention for the company to be substantially invested within six months and we are excited to start investing," Marc Bajer said in a statement.
Winterflood Securities Ltd was the sponsor, financial adviser and bookrunner on the IPO.
By Samuel Agini; [email protected]; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
HWSL.L