27th Sep 2019 14:10
(Alliance News) - Hipgnosis Songs Fund Ltd on Friday said it is seeking to raise GBP300 million before expenses via a C share issue to acquire "attractive pipeline of catalogues".
The music catalogue investment firm said it intends to issue an initial 300 million C shares, but no more than 500 million C shares, at a price of 100 pence each.
Hipgnosis Songs shares were trading 0.2% lower on Friday in London at 107.25p each, giving it a market capitalisation of GBP417.6 million.
The company said it currently expects to deploy the net proceeds of the fundraising within six months of admission.
The C shares to be issued will convert in ordinary shares within one months and will carry the right to vote and will be entitled to participate in any dividends.
Hipgnosis said an increase in the size of the company should improve its liquidity and enhance the marketability of its shares, post conversion of the C shares, resulting in a broader investor base over the longer term.
The company said its investment adviser has entered into exclusivity agreements to acquire nine catalogues with an aggregate purchase price in the region of GBP300 million from well-known songwriters, artists and producers. In addition, Hipgnosis said it is in discussions on an expanded pipeline with an aggregate purchase price of GBP1 billion.
By Evelina Grecenko; [email protected]
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