Wilson Asset Management is looking to raise up to $330 million for its latest listed investment company, WAM Leaders.
The LIC, which aims to invest in undervalued top 200 companies listed on the Australian Securities Exchange, will be offered at $1.10 per share, according to a prospectus lodged with the corporate regulator late on Monday.
The company is seeking $165 million from investors, although this can be expanded to $330 million if the demand is high. WAM has earmarked $50 million of the raising for its existing investors. It is understood 1940 of WAM clients have asked for a copy of the latest prospectus.
“The company aims to provide shareholders with exposure to large-cap, undervalued companies in the S&P/ASX 200 Index using Wilson Asset Management’s research-driven and market-driven investment processes,” WAM Leaders chairman Geoff Wilson said in his letter to investors.
“The company’s investment objectives are to deliver a stream of fully franked dividends, to provide capital growth over the medium-to-long term and to preserve capital,” he said in the letter published in WAM Leaders’ prospectus.
WAM Leaders is the latest LIC to hit the market by Mr Wilson, who also heads the $1 billion WAM Capital which is popular among retail investors. Last year, the company sought $550 million from investors for its global charity LIC that donated 1 per cent of net tangible assets each year to charities tackling youth mental health issues.
Taylor Collison and Morgans are joint lead managers of the WAM Leaders raising. Patersons, Bell Potter, Baillieu Holst, Ord Minnett and Macquarie are co-managers of the latest deal.
Watson Mangioni Lawyers is the legal adviser, while Pitcher Partners Sydney Corporate Finance are handling the accounting side of the business.
The WAM Leaders offer is expected to open on 12 April and close on 17 May. It is slated to start trading on 30 May.
A total of 15 million shares and 15 million options are expected to be rolled out as part of the offering. Investors are expected to subscribe to a minimum of 2000 shares.
“We believe Australian and New Zealand investors have limited access to research-driven, active, index-unaware fund managers focused on Australia’s large-cap listed companies,” Mr Wilson said.
“The company, a listed investment company … will provide investors access to this opportunity,” he said.