Seraphim Space Investment Trust PLC (LSE:SSIT) has launched an equity raise that gives investors a fresh entry point into one of the stock market's most distinctive funds, at a fixed price of 100p per C share.
The trust's shares, down around 9% on Monday, were trading at 219.5p ahead of the raise, up from around 120p at the start of the year, a rise of almost 83%.
How the C shares work
C shares are a standard mechanism used by investment trusts to raise new money without diluting existing shareholders. Rather than issuing new ordinary shares into the existing pool, the trust creates a separate share class that sits alongside the ordinary shares during a deployment phase.
The proceeds from the C share issue are invested separately, which means new investors are not dragged down by the existing portfolio's valuation, and existing shareholders are not diluted by cash that has yet to be put to work.
Once Seraphim Space has deployed the new capital, the C shares convert into ordinary shares. The conversion ratio is based on the net asset value of both share classes at that point, calculated on a quarterly basis.
In effect, investors buying C shares at 100p are buying into a portfolio that will be built from scratch, then merged with the main trust once it reaches maturity.
This structure reduces what the industry calls cash drag, the performance penalty that occurs when a fund is sitting on uninvested cash.
How private investors can participate
The raise has two components. Institutional investors are taking part through a placing, which closes at noon on 7 May 2026. Private investors can participate through a separate retail offer, which closes earlier, at noon on 6 May, though individual platforms may impose earlier deadlines.
They can access the investment round through RetailBook, a platform that distributes investment trust fundraisings to private investors via a network of brokers and investment platforms. Details, including a list of participating distributors, are available at the RetailBook website.
Shareholder approval for the issue is required at a general meeting on 6 May 2026.
The investment case
Seraphim Space describes itself as the world's leading SpaceTech investor, with around $550 million in assets under management. Its manager, led by Mark Boggett, James Bruegger and Rob Desborough, backs private, growth-stage companies across the space sector, from satellite navigation to Earth observation.
The trust's current portfolio holds 24 companies. The top ten have delivered average annual revenue growth of 79%, and more than 85% of the portfolio is expected to reach EBITDA profitability in 2026. Six holdings have achieved unicorn status since SSIT made its initial investments.
Recent portfolio news has been positive. Xona Space Systems, which makes satellite navigation technology, completed an oversubscribed $170 million Series C round in March, lifting the fair value of SSIT's holding by 167%.
HawkEye 360, a radio-frequency analytics company and the trust's largest holding at just over 10% of net assets, has filed for a US IPO.
Over 70% of the portfolio has a defence focus, which has helped performance as European governments accelerate spending on sovereign capabilities.
The C share offer gives retail investors a way to gain exposure to that portfolio at a defined entry price, without buying into the ordinary shares at a premium to NAV.