The board of Dexion Absolute has announced that the placing and offer for subscription of  its C Shares was significantly oversubscribed. The board decided to increase the maximum issue size from USD750m to USD950m (GBP460.6m), at which level the issue still remained oversubscribed, making LSE-listed Dexion Absolute the world's largest listed closed-end hedge fund.

All valid applications under the offer for subscription will be accepted in full. All valid applications under the placing for C EUR shares, C USD shares and C AD shares will also be accepted in full. Valid applications under the placing for C GBP shares will be scaled back on a basis to be determined by the board and the placing agents.

As a result of the issue, the Dexion Absolute will have aggregate net assets of USD2.78bn (GBP1.35bn), and will be the world's largest listed closed-end hedge fund product.

Specialist hedge fund consultant Dexion Capital and Hoare Govett acted as joint placing agents to the issue, which is the largest capital raising to date in the London-listed funds of hedge funds sector, attracting a wide range of UK, European, Asian and Australian-based investors including insurance companies, institutional pension funds, private wealth management groups and discretionary asset managers.

Ana Haurie, chief executive of Dexion Capital, says: "We are delighted with the response to this issue. As the world's largest product of this type, Dexion Absolute provides simple and liquid access to an institutional quality portfolio of hedge funds.'

Roxanne Martino, chief executive of Harris Alternatives, the financial advisors to Dexion Absolute, says, "We are very positive about the opportunities now opening up for talented hedge fund managers and are excited to be able to put new money to work for Dexion Absolute's investors."

At least 85 per cent of the net proceeds of the issue will be invested, or committed to be invested, by 2 January 2008, in appropriate hedge funds.

Application has been made for C Shares to be admitted to trading on the London Stock Exchange. It is expected that dealings in C Shares will begin on 17 December.