Hunter Hall, one of the largest ethical investment trust managers is set to float in a bid to raise $4.5 million, giving the boutique fund manager a valuation of $21.1 million.
Up to five million shares will be issued at $0.90 per share with a minimum of $1,000.
According to the group, the capital raised will be used to grow funds under management as well as spread ownership of the company to staff, distribution partners and investors.
Hunter Hall will give preferential treatment in allotting shares to unit holders in its flagship fund, the Value Growth Trust, and to financial planners and advisers who have supported the trust as well as Hunter Hall staff.
The Value Growth Trust is Australia’s largest ethical investment trust with $150 million under management. In the five years to October 31, 2000, the Trust was the second highest performer among almost 5,000 Australian managed funds and indices measured by Morningstar, with a compound annual return of 30.2 per cent.
Hunter Hall chairman Peter Hall says the group also plans to launch an ethical superannuation product later this year.
“We are of the view that the ethical superannuation segment has the capacity to grow to over $ 5 billion of funds over the medium term and we would like Hunter Hall to have a significant share of that,” Hall says.
The float is currently open and will close on February 16 with an expected listing date of February 28.
