Dexion Absolute Limited has published a prospectus in respect of the proposed Placing and Offer for Subscription of C Shares, its fifth share issue.
The Company is a Guernsey registered, closed-ended investment company that was launched in December 2002 raising net proceeds of approximately GBP 33.4 million. Since then the Company has successfully completed three further issues of C Shares, raising aggregate net proceeds of approximately GBP 302 million (in sterling terms).
The Company effected a capital reorganisation in June this year pursuant to which the Company's existing issued share capital was converted into no par value shares denominated in sterling whilst its remaining authorised share capital was converted into no par value shares which could be designated by the Directors as C Shares and/or Ordinary Shares or otherwise and in such currency class or classes as the Directors may determine at the time of issue.
As at 30 September 2005 the Company had 258,253,480 GBP Shares in issue with a market capitalisation of GBP 349.3 million, 26,188,485 EUR Shares in issue with a market capitalisation of EUR 51.7 million and 13,811,910 USD Shares in issue with a market capitalisation of USD 32.9 million.
As at the same date, the aggregate net assets of the Company (in sterling terms) were approximately GBP 384.3 million, equivalent to an unaudited NAV per GBP Share of 128.73p, per EUR Share of EUR 1.8992 and per USD Share of USD 2.3041.
The Company's investor base consists of a broad range of predominantly UK and European based investors including private wealth management groups, insurance companies, pension funds and discretionary asset managers.
As at 1 October 2005 the Company (whose investment adviser is Chicago-based Harris Alternatives LLC) was fully invested in 50 underlying investments across 7 hedge fund strategies, as follows:
Strategy Asset Allocation No. of Investments <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Distressed securities 13.0 per cent 6
Equity strategies 9.2 per cent 4
Hedged equities 34.0 per cent 18
Opportunistic 16.2 per cent 6
Relative value arbitrage 8.0per cent 3
Short selling 9.6 per cent 8
Tactical trading 10.0 per cent 5
100 per cent 50
The information in this table has not been subject to audit.
Source: Harris Alternatives L.L.C.
The exact number of funds and strategies used may vary over time but the Directors intend that the Company will be invested in a minimum of 20 funds implementing at least 5 different strategies at all times.
Expected Timetable for the share issue
Latest time and date for receipt of completed Public Application Forms and payment in full under the Offer for Subscription -- 11.00 am on 2 December 2005.
Latest time and date for receipt of Placing Commitments -- 3.00 pm on 2 December 2005.
Results of Issue announced -- 5 December 2005.
Dealings in the C Shares and CREST stock accounts or Euroclear accounts credited against payment for Placing Shares -- 12 December 2005 or, where relevant, Offer Shares issued in uncertificated form.
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