Global equities manager Magellan has announced plans to undertake an IPO for a new ASX-listed investment trust called the Magellan Global Trust.
The offer for the Magellan Global Trust will be divided into two parts: a priority offer to Magellan's 250,000-300,000 shareholders, and a broker firm/general public offer.
Magellan Global Trust will be a closed end investment trust listed on the ASX that will invest in 15-35 'high quality' global companies, with the ability to hold 50 per cent of the portfolio in cash.
Magellan chief executive Hamish Douglass and portfolio manager Stefan Marcionetti will act as portfolio managers for the trust.
The trust will target a cash distribution yield of 4 per cent per annum, paid semi-annually, with the first distribution of 3 cents per unit expected to be paid in January 2018.
The priority offer, which has a record date of 1 August 2017, will give eligible applicants a 'loyalty reward' of additional units in the new global trust worth 6.25 per cent of the value of units allotted in the priority offer, paid by Magellan.
The public offer will be jointly led by CommSec, NAB, Ord Minnett and Taylor Collision – with Bell Potter, Forsyth Barr, JBWere, Morgans Financial and Macquarie Equities named as co-managers.