Hipgnosis Songs Fund Ltd (LON:SONG) is raising £150mln to acquire more back catalogues, which it says contains some of the "most influential and successful recordings of all time".
Merck Mercuriadis, Hipgnosis’ founder and adviser, said “This raise gives our public markets investors, historic and new, the only chance for the next 12 months to get access to Hipgnosis' existing portfolio as well as a pipeline comprising some of the most important and successful songs of all time, at valuations that are highly attractive considering the continued explosive growth of streaming that will magnify future revenues considerably."
Shares are being issued at 121p, a 2% premium to Adjusted Operative NAV of 118.57 on 31 March 2021
Separate to the placing, the company said it is currently considering refinancing its existing Revolving Credit Facility.
Mercuriadis added: “Three years after our IPO the support of our shareholders has allowed us to build a portfolio of songs with a value over US$2.2bn and Hipgnosis has delivered a Total NAV Return of 40.7% against the most challenging social and economic backdrop of our lives."
Hipgnosis’ most recent acquisition was the back catalogue of grammy award-winning songwriter Joel Little, who has penned hits for Lorde and Taylor Swift.