London-based asset manager Fundsmith LLP is looking to float an investment trust that will invest in global small and midcap companies.
Smithson Investment Trust is planning an IPO with the intention of raising up to £250 million.
The deal will involve a placement, a subscription offer and an intermediaries offer of the company's ordinary share capital. The newly establish investment trust will also set out a 12-month placing program.
Investec Bank PLC will serve as sole sponsor, book runner, broker and intermediaries offer adviser on the IPO, the prospectus of which is expected to be released Sept. 17. Admission of and dealings in ordinary shares would be on Oct. 19.
Smithson said Fundsmith will be its investment manager, while its management team will be led by Simon Barnard as investment manager and Will Morgan as assistant investment manager. The fund will focus on global small and medium-sized companies, with market capitalizations of between £500 million and £15 billion.
Terry Smith, CEO and chief investment officer of Fundsmith, said he will invest £25 million in Smithson at launch, with an additional £5 million investment from Fundsmith partners and employees. Smith will also serve as adviser to Barnard and Morgan.