Listed investment company (LIC) WAM Capital has announced a placement offer on the back of adviser interest for its listed fund.
"An advisory group approached us a few months ago, wanting to put in a sizeable amount of money in WAM Capital. We thought the best way to do it was via a placement," WAM Capital chair Geoff Wilson said.
Since it launched the placement, a number of financial planning groups have taken up the offer.
"We have been contacted by a number of financial planning groups and a number of these groups have participated in the placement," Wilson said.
He said the end of trail commissions under the Future of Financial Advice reforms would mean greater interest in LICs and exchange-traded funds from the financial planning sector.
WAM Capital was positioning for growth in order to cater for that group of investors, including advisory firms and financial planners, he said.
"Given the growing interest from financial planners wanting to invest with us, we believe it is important to be at a sufficient size. The larger you are, the wider the group of people who can invest with you," he said.
"If we were larger then we would not have needed to do this placement."
The issue price for the placement is 161.59 cents a share. Shareholders of WAM Capital get one share and one option.
Investors in the placement will also be able to participate in WAM Capital's fully franked final dividend in September. The placement closes on the 24 August.
