PM Capital IPO to be oversubscribed
The capital raising for PM Capital's listed Capital Global Opportunities Fund is likely to close oversubscribed with 80 per cent of the $200 million required already taken by institutional investors.
The fund, which closes to subscriptions today, opened to retail investors last week. PM Capital chief executive Chris Donohoe stated they were likely to receive about 20 per cent of allocations in the fund.
The fund would not exceed the $200 million figure listed in the prospectus, with Donohoe stating that PM Capital had a duty to support the stated position.
He said excess funds would also impact the levels of support PM Capital could provide, and the fund level had been set to make its management easier.
He also said given the interest in the fund and the speed at which funds were allocated PM Capital would likely consider another listed fund offering possibly in the Asian equities sector.
"Listed investments are the preferred equities vehicle for many people since they do not have the inflow and outflow issues of a retail fund and from a long term point of view have a greater capacity to perform while still offering liquidity," Donohoe said.
"Australian equities represent about $23 billion in listed investments while international equities only have $1 billion in funds under management through listed investments. We believe demand will increase over time as so few managers are offering listed investments outside Australia."
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