24th Sep 2020 15:30
(Alliance News) - Hipgnosis Songs Fund Ltd on Thursday said it has successfully raised GBP190 million from its placing and PrimaryBid offer.
The UK investment company, offering exposure to songs and associated musical intellectual property rights, said GBP186.4 million was raised from its placing, plus GBP3.6 million from PrimaryBid. Both were priced at 116 pence per share.
Applications made to admit all 163.8 million ordinary shares, which will result in the company having 797.3 million ordinary shares and 236.4 million C shares in issue.
Merck Mercuriadis, founder of Hipgnosis and chief executive of the investment adviser, The Family (Music) Ltd subscribed for 100,000 shares. Chris Helm, chief financial officer of the investment adviser subscribed for 8,620 shares.
Directors Andrew Wilkinson and Simon Holden subscribed for 13,000 and 36,000 shares respectively.
Mercuriadis said: "To raise GBP190 million in 72 hours and GP420 million in two months during a pandemic is the greatest endorsement from the investment community for Hipgnosis and proven songs as an asset class. The uncorrelated returns songs provide have been very important to our shareholders during these difficult times and have only reinforced the belief in our thesis which has now become reality."
He added: "We will carry on with the course we have set for the last two plus years that has made us a FTSE 250 company. We will deploy quickly in the finest songs, we will actively manage them better than before and provide our great investors with a strong return all the while pushing forward the agenda of the songwriter."
Shares in Hipgnosis were down 1.0% at 115.80p in London on Thursday afternoon.
By Anna Farley; [email protected]
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