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Dexion Absolute raises GBP134m in oversubscribed tap issue

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Guernsey-domiciled fund of hedge funds Dexion Absolute has raised a further GBP134.2m (USD263.2m) from investors in four currency classes of ordinary shares, having already attracted GBP48

Guernsey-domiciled fund of hedge funds Dexion Absolute has raised a further GBP134.2m (USD263.2m) from investors in four currency classes of ordinary shares, having already attracted GBP488m through a sale of shares in December.

The new capital-raising was carried out through a tap issue, which enabled Dexion Absolute to issue up to 9.99 per cent of the existing shares in each class without issuing a new prospectus. The manager of the fund, Dexion Capital, says the new offer, like that in December, was oversubscribed.

A total of 84,860,882 new shares have been placed with investors, comprising 65,304,042 new sterling shares at a price of 157.54p, 9,612,154 new euro shares at EUR2.2318, 7,589,952 new US dollar shares at USD2.8258 and 2,354,734 new Australian dollar shares at AUD3.9810.

It is expected that settlement and admission of the shares to the official list of the Financial Services Authority and to trading on the London Stock Exchange will take place on February 21, and that substantially all of the net proceeds of the placing will be invested or committed March 3.

The issued share capital of Dexion Absolute will then comprise 718,998,165 sterling shares, 105,829,915 euro shares, 83,565,450 US dollar shares and 25,925,646 Australian dollar shares.

Meanwhile Dexion Trading, another London-listed fund of hedge funds, has announced that it is considering an issue of new shares in response to demand from both existing shareholders and would-be new investors.

Last Septembers shareholders voted to approve a reorganisation of Dexion Trading involving the replacement of its previous investment adviser, FRM Investment Management, with Permal Investment Management Services, part of the Legg Mason group. The change involved Dexion Trading becoming a feeder fund to Permal FX, a directional trading fund of hedge funds that offers investors exposure to commodities.

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