Contango MidCap Income Limited has announced it will extend the closing date of its float until Monday 17 December.
Contango said it has received solid feedback regarding demand for the float but has extended the date following requests from advisers for additional time to liaise with investors.
"People are investing in the company to obtain clearly defined quarterly income streams of 7.2 per cent per annum plus franking through investing in a diversified portfolio of 30 to 40 high-yielding mid-cap stocks," Contango MidCap Income Limited's chairman, Ian Ferres, said.
Subject to Australian Securities Exchange (ASX) approval, the company now proposes to list on Tuesday 8 January 2013.
On November 2, Contango announced listing of its new investment company, Contango MidCap Income Limited in response to adviser demand.
The company will provide diversified investment through a portfolio of approximately 30-40 stocks, predominantly comprising companies from the Australia Securities Exchange (ASX) MidCap and ASX Small Ords indices.
Contango MidCap Income Limited uses a listed investment company (LIC) structure to pay income streams of 7.2 per cent of the value of net tangible assets (NTA) via a quarterly payment.
Contango Asset Management has been appointed as investment manager and has agreed not to charge a management fee for its first two years of operations, allowing the company to build sufficient reserves from which to pay dividends to shareholders.
The decision to list the new company follows market research of 40 advisers and 10 licensees.
