AcenciA, which specialises in debt strategies, plans to float on the Irish stock exchange and raise up to GBP 60 million through a shares placing.
Application will be made to admit the Ordinary Shares to trading on the Irish and London Stock Exchanges through CREST. Saltus Partners LLP will act as sub-manager to the Company and Bridgewell Securities Limited as lead manager and broker to the issue.
AcenciA is a closed-ended investment company and the only UK-listed fund specialising in debt hedge funds. Its investment objectives will be to achieve annual returns in excess of three-month Sterling LIBOR plus 5 per cent over a rolling three-year period with a standard deviation of under 5 per cent. It will have no long-term gearing at the Company or fund of funds level and minimal gearing at the underlying hedge fund level.
AcenciA will invest in underlying assets, which are predominantly US dollar denominated, whereas the shares will be sterling denominated. In order to address the exposure to exchange rates, the Company will consistently engage in currency hedging.
It is the intention of the Board that the Company will pay an annual dividend of two thirds of total returns, capped at 3.5 per cent of net asset value, which will be available as cash or scrip.
In order to achieve its investment objectives, the Company will invest in an actively managed portfolio of predominantly debt-oriented hedge funds.
The Company's investment adviser will be Sandalwood Securities, an SEC-registered investment adviser and a member of the NASD who currently manages approximately USD 925 million in hedge fund investments across nine separate funds.
"We are delighted to be bringing this exciting investment opportunity to market," says Jim Le Pelley, chairman of AgenciA. "The launch of AcenciA will allow investors the opportunity to participate in the only quoted UK hedge fund which is focused on debt strategies as well as the only one which pays a dividend. We are confident that this development will attract a wide range of investors."
A prospectus will be issued in due course which will contain detailed information about the Placing and Offer for Subscription, AcenciA and its management, as well as financial information. It is expected that the Offer for Subscription will be open from Friday 11 November to Friday 18 November, and that dealings in AcenciA shares on the Irish Stock Exchange and the London Stock Exchange will commence on Thursday 24
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