Seraphim Space Investment Trust PLC has set out its target of raising up to £180mln in its initial public offer in London.
The newly established closed-ended investment company, which intends to be the first ‘space tech’ investment fund in London if not the world, is offering up to 150mln shares by way of an institutional placing and offers for subscription and via intermediaries, all at 100 pence per Ordinary Share.
A further 30mln shares could also be sold by way of direct subscriptions if there is demand.
The company will immediately acquire a portfolio of 15 assets from the Seraphim Space Fund and plans to subsequently also acquire stakes in four other space businesses which are currently undergoing corporate activity.
Assuming the successful completion of all 19 this would assemble a portfolio with a total potential value of approximately £100mln.
Seraphim said this would also imply total targeted gross proceeds of roughly £250mln.
With many leading space-related companies still in their infancy and therefore not yet listed, most if not all of the trust’s exposure will be to unlisted companies, said collective funds specialist Tom Bailey at broker Interactive Investor, with the closed-ended nature of investment trusts making this an “ideal vehicle” for giving investors access to companies not yet listed on a stock exchange.
“The trust defines the sort of companies it will hold as those ‘which rely on space-based connectivity or precision, navigation and timing signals or whose technology or services are already addressing, originally derived from, or of potential benefit to the space sector’,” Bailey added.
He said Seraphim’s target of an annualised net asset value total return of at least 20% over the long term, is “rather ambitious”.