The new company, WAM Microcap Limited, will focus on small and microcap stocks and, according to Wilson Asset Management chair Geoff Wilson, will give investors “undervalued microcap growth companies with a market capitalisation of less than $300 million at the time of acquisition”.
The initial public offering seeks to raise $154 million through the issue of up to 140 million shares at $1.10 each, with the offer slated to open on 15 May 2017, Mr Wilson said.
Almost 80 per cent of the capital raising, $121 million, will be offered to existing Wilson Asset Management entity shareholders through a priority allocation offer expected to end on 5 June 2017.
“I will personally be investing $1.1 million in the offer and hope that you will join me as a shareholder in WAM Microcap,” Mr Wilson said.
He said the offer will not include the issuance of options as “the capacity restraints on a product focused on microcap companies requires the capital raising to be limited in size”.
Read more:
FSC rails against 'rust belt view' of super
Profit growth slowing for big banks: KPMG
Citi Research dominates ESG awards
Vanguard Australia announces fee cuts
Active managers set to benefit from volatility
