leadf
logo-loader
viewCabot Square Alternatives Plc

Cabot Square Alternatives unveils plans to list on main market of the LSE with a £200mln IPO

The company said it is seeking to raise the money by way of an initial placing and share subscription at an issue price of 100p per ordinary share

IPO sign
It has a target dividend yield of 5% per annum, based on the initial issue price

Cabot Square Alternatives Plc (LON:ALTS), a closed-ended investment company established to invest directly in a portfolio of infrastructure and property alternative assets and asset managers managing such alternative assets, has announced plans for an initial public offering (IPO) and admission to the main market of the London Stock Exchange.

As part of the IPO, the company said it is seeking to raise £200mln by way of an initial placing and share subscription at an issue price of 100p per ordinary share.

In addition, the group said it will establish a placing programme that will allow it to issue, in aggregate, up to 500mln ordinary shares and/or C shares, out of which the company can issue a maximum of 250mln ordinary shares under the Initial Issue.

The company, which is managed by Cabot Square Capital LLP and will be advised by Cabot Square Alternatives Adviser LLP said it will provide a new model for investors to access returns from the alternatives sector.

The group said its investment manager and investment adviser believe there is a shortage of capital and a lack of expertise in the market of investing in infrastructure and property Investments with a value between £1mln and £25mln.

Target returns

Cabot Square Alternatives noted that its investment manager and investment adviser have identified an attractive pipeline of £500mln of investment opportunities with potential to scale to £1bn-plus and which are expected to enable the company to meet its intention to have substantially invested or committed the net IPO proceeds within 18 months of initial admission.

The group said it has a target dividend yield of 5% per annum, based on the initial issue price, and aims to increase dividends progressively over time, with the target for the period from initial admission to 31 December 2020 to announce dividends of at least 3.0p per ordinary share in total.

In addition to delivering its target returns, the company will also target investment opportunities that can make a positive ESG (Environmental, Social and Governance)  impact.

The company said it has already received non-binding commitments of approximately £40mln from three investors at this early stage of the process.

The group also noted that its investment manager and investment adviser have indicated to the company that members of their respective teams and affiliates intend to subscribe for 500,000 ordinary shares at the issue price and the directors of the company intend to subscribe for 125,000 ordinary shares.

Making a positive ESG impact

Keith Maddin, fund manager and partner of Cabot Square Capital commented: "ALTS represents a new model for investors to access returns from investing directly in attractive infrastructure and property Alternative Assets as well as share in the value creation of specialist Alternative Asset Managers by building Alternative Asset Platforms.

“In addition to delivering target returns we will also focus investment on making a positive ESG impact".

And Charlie Rickets, chairman of Cabot Square Alternatives Plc, said: "We are delighted to announce our intention to launch ALTS and believe that our management team has the experience and expertise to deliver the target returns.

“Given our pipeline we expect to deploy the IPO proceeds efficiently and effectively". 

Cantor Fitzgerald Europe is acting as sole bookrunner for the IPO, with Kepler Partners acting as intermediaries offer adviser and BDO is acting as sponsor in connection with the initial issue and initial admission.

The group said initial admission and dealings in its ordinary shares on the London Stock Exchange are expected to commence at 8:00am on 18 February 2020.

Quick facts: Cabot Square Alternatives Plc

Price: - -

LSE:ALTS
Market: LSE
Market Cap: -
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Cabot Square Alternatives Plc named herein, including the promotion by the Company of Cabot Square Alternatives Plc in any Content on the Site,...

FOR OUR FULL DISCLAIMER CLICK HERE

Buds & Duds: Analysts call for cannabis sector's bottom; stocks stay quiet

The North American Marijuana Index, which tracks the top cannabis stocks in the US and Canada fell 1.4% at 127.4 points. Elsewhere, the OTCQX Cannabis Index was up 0.4% to 446.5 points. Buds were PharmaCielo Ltd (CVE:PCLO) (OTCMKTS:PHCEF), Mojave Jane Brands Inc (CSE:JANE)...

on 11/06/2019