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”.
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