Pacific Alliance Asia Opportunity Fund has been admitted to trading on AIM, the secondary market operated by the London Stock Exchange plc.
It has commenced trading on AIM under the symbol 'PAX'. The Company raised USD 275,000,000 million in gross proceeds through a placing of 275,000,000 ordinary shares at USD 1.00 per share giving the company a market capitalization of approximately USD 275,000,000 million at admission. Grant Thornton Corporate Finance is the Company's nominated adviser and LCF Edmond de Rothschild Securities Limited is the Company's broker.
Pacific Alliance Asia Opportunity Fund Limited is a newly incorporated, closed-end Cayman Islands registered, exempted company incorporated to make and hold investments in undervalued companies and assets mainly in Greater China, as well as in other countries in Asia.
The principal investment objective of the Company is to provide shareholders with capital appreciation and a regular level of income by seeking value, arbitrage and special situations investments in Greater China and other countries in Asia. The Company will invest and hold equity, debt and other interests in both listed and unlisted companies and assets where the Company's investment manager, Pacific Alliance Investment Management Limited believes that investment can be made at a discount to realizable value.
The Company seeks to achieve returns through identifying assets that can be purchased at discounts to their realizable net asset value and realizing such value through sales of the underlying assets or through other forms of structure exit. Discounts to realizable net asset value may exist as a result of factors commonly seen in China and other emerging markets in Asia which include liquidity constraints, distress, informational asymmetries, imperfect corporate governance and frequent regulatory change.
The Company's investment strategy is fundamentally opportunistic. The Investment Manager will consistently seek and evaluate opportunities with the characteristics described above and the scale and nature of such opportunities are constantly evolving.
The Company aims to adhere to the following investment policies and restrictions:
Pacific Alliance Investment Management Limited, a fund manager and fund management advisory business with an office in Hong Kong, has been appointed to identify and execute investments, and to manage the Company's assets. Investments are sourced, evaluated, executed, monitored and exited by the Investment Manager.
In connection with the Company's AIM listing, Horst Geicke, Chairman of the Board of directors of Company, said: "We are very pleased with the launch of our latest fund which continues our strategy of targeting the mis-pricing opportunities and the opportunities to unlock value created by the scale and speed of China's transformation."