27th Apr 2015 08:23
LONDON (Alliance News) - Opera Investments PLC saw its shares rise in early dealings as it started trading on the London Stock Exchange's main market, as central London-focused residential real estate investment trust K&C REIT PLC added itself to the pipeline of companies looking to list on the AIM market.
Opera, which has been created to buy up businesses in the natural resources or oil and gas sectors, raised GBP1.1 million net of costs as it placed 12 million shares at 10 pence each. It had an initial market capitalisation of GBP1.7 million at the placing price, but its shares were trading at 10.84p in early dealings.
"The company's objective is to take advantage of opportunities to invest in these sectors that have seen considerable recent volatility and to operate the companies, businesses, projects or assets that it acquires in any acquisition," it said, adding that it wants to buy a trading business rather than just buying minority stakes in businesses.
K&C REIT, meanwhile, is hoping to start trading on AIM in late May. Its owns and manages residential property in central London, and wants to expand its portfolio to over GBP500 million. It has already signed contracts to buy an initial special purpose vehicle and expects to make a second acquisition within three to six months of listing. It wants to raise more than GBP6 million in the listing to fund the first acquisition and raise working capital.
"On admission to AIM, K&C will provide investors with a unique opportunity to gain exposure to the Central London residential property market, one of the most resilient sectors of the UK housing market over the past few decades. By taking advantage of a REIT's favourable tax structure, we will have the ability to purchase properties at a discount to market value and will look further to increase value through active asset management, aiming to generate growth in capital values and rental yields," Chief Executive Tim James said.
Ranger Direct Lending Fund PLC, which had announced earlier this month that it wanted to list on the Main Market, said Monday that it has now closed an oversubscribed placing and intermediaries offer ahead of the start of dealings on May 1.
It got valid acceptances for 13.5 million shares, meaning its initial market capitalisation will be GBP135 million based on the issue price of GBP10 a share, in line with its target.
The fund is being set up to acquire a portfolio of debt obligations, including loans, invoice receivables and asset financing arrangements originated or issued by businesses which are not traditional retail or investment banks.
By Steve McGrath; [email protected]; @stevemcgrath1
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