Hipgnosis Songs Fund Limited (LON:SONG) is intending to raise £200mln by way of a placing of C shares at 100p each.
Retail investors will be able to acquire shares at the placing price through the PrimaryBid platform, which will raise additional finance for the investment company. The PrimaryBid offer will be open to retail investors us already open and is scheduled to run until 1.00pm on July 10 unless it is closed before then if it becomes oversubscribed.
The net proceeds of the issue will be used to fund further acquisitions of song catalogues.
The C shares would be required to be converted into new ordinary shares.
"Having invested over US$1bn in some of the most extraordinarily successful songs of all time in the last 24 months, we are now a FTSE 250 company and the 58th biggest yielder on the index,” Merck Mercuriadis, the founder of Hipgnosis bragged in a statement.
“This has firmly established songs as a new uncorrelated asset class. Our recent NAV [net asset value] results have demonstrated that our access combined with the growth of streaming, increased songwriter royalties thanks to the CRB [Copyright Royalty Board] ruling, our active management, efficiencies in collection and songwriters first strategy can deliver great uncorrelated returns for our shareholders even during the course of the pandemic,” he added.
“This capital raise provides us with the opportunity to continue growing our portfolio of culturally important proven hit songs, which currently offer significant value,” Mercuriadis declared.
Shares in Hipgnosis were up 0.2% at 116.24p.