Hipgnosis Songs Fund Limited (LON:SONG), the music royalty trust, has confirmed it is considering a share issue as one of the options to fund a £1bn pipeline of potential acquisitions.
In a statement, the company said it is ‘exploring the most appropriate way of funding further investments, with a view to delivering further value for its shareholders, including the use of borrowings … or an equity fundraise’.
Shareholders yesterday approved an increase in the borrowing capacity of the business for up to 30% of Net Asset Value from 20% previously.
Hipgnosis has been expanding rapidly through the acquisition of numerous back catalogues of famous artist.
The catalogue now boosts songs by Justin Timberlake, Madonna, Jay Z, Rihanna, and Drake
Its last equity raise was in October, 2019, when it received £231mln from an issue of C shares.