U.K.-based Augmentum Fintech plc said Feb. 20 that it intends to raise at least £100 million through an IPO to invest in private financial technology companies in the U.K. and wider Europe.
The newly established closed-ended investment company seeks to issue a target of 100 million ordinary shares at a price of £1.00, with a maximum issue size of 125 million shares. Investment trust RIT Capital Partners Plc, chaired by Jacob Rothschild, and the management team will invest £10 million and £2.7 million, respectively.
The company will apply for admission of its shares to the premium listing segment of the official list of the U.K. Listing Authority and to trading on the London Stock Exchange's main market for listed securities, with admission expected to take place in early March. Augmentum Fintech expects to be substantially fully invested within 12 months of listing.
Conditional on admission, the company will acquire an initial portfolio of five fintech investments — Zopa Ltd., Seedrs, Interactive Investor, BullionVault and SRL Global — with an aggregate value of roughly £33.3 million as of Dec. 31, 2017.
Once the U.K. Financial Conduct Authority has granted the necessary authorization, the company is intended to be structured as an internally managed closed-ended investment firm. Augmentum Capital LLP will be appointed as its investment adviser in the interim.
Fidante Capital is acting as sole financial adviser and book runner in relation to the issue, for which a prospectus is expected to be published by the end of February.