Magellan Financial Group, the company formed through the recapitalisation of Pengana Hedge Funds Group in September, has closed its initial public offering (IPO) oversubscribed.
The IPO for its Flagship Fund raised in excess of $378 million, at $1.00 per share, and directors will meet next week to decide whether or not to scale back allocations.
Over 30 brokers and financial planning groups applied for shares in the issue, which will begin trading on the Australian Stock Exchange on December 19.
Its mandate is to invest in a portfolio of about 50 international and Australian companies with attractive business characteristics at a discount to their assessed intrinsic values, according to Magellan Flagship Fund director Hamish Douglass.
Magellan Financial Group is owned by a consortium of investors including NPH, which has a majority stake, and the Packer family's Consolidated Press Holdings.
Its Flagship Fund is the largest internationally focused listed investment company.
The IPO was originally intended to raise between $100 million to $330 million but was increased because of strong broker demand.
The broking syndicate included the joint lead managers ABN Amro, Bell Potter, Deutsche Bank, Forsyth Barr, Southern Cross Equities and Taylor Collison.
