The market response is in line with the fund's recent 'Recommended' rating by research house Lonsec.
"The feedback has really surprised us. We knew there was interest because the company is itself a response to adviser demand for reliable income streams to help manage income planning for clients," Contango national distribution manager Boyd Peters told InvestorDaily.
"The Recommended rating from Lonsec is of course extremely useful for advisers who wish to invest clients in the float," he said.
Lonsec stockbroking chief executive David Wylie said that since the last RBA cut, there has been an increased appetite for money to move out of cash and into higher income generating investments.
"Advisers have also shown plenty of demand for securities with a strong yield focus particularly outside of the ASX Top 30," he said.
On Friday, Contango also announced the offer has opened for applications to invest.
The company will hold a portfolio of 30-40 quality high yielding MidCap stocks and provide shareholders with quarterly income streams amounting to 7.2 per cent p.a. of the company's July 1 NTA value.
"The objective is to complement portfolios holding large cap stocks and supplement the periods that those stocks pay the least dividends. Many expressing interest in the company are looking at this as a way to invest money presently in term deposits into the market," Mr Peters said.
The investment portfolio is managed by Contango Asset Management Ltd and headed-up by David Stevens and Alistair Francis.
Applications to subscribe to the Contango MidCap Income Limited's float closes at $200 million or on 6 December, whichever is soonest.
