Ludgate Environmental, a Jersey domiciled, closed-ended investment company, issued more than 25.7 million shares at 100p each.
The company was launched to enable experienced and sophisticated investors to participate in a diverse portfolio of environmental/cleantech investments.
The shares were issued with investor warrants attached on a one-for-four basis. Each warrant, which is worth 150p, entitles the holder to subscribe for one new share. Following the placing, some 6.4 million warrants have been issued.
In addition to these warrants, 1.2 million manager warrants have been issued. These warrants have not been listed and save for the subscription price being 175p will have the same terms and conditions as the investor warrants.
Ludgate’s directors believe that there will be an increasing demand for environmentally aware products and services due to a decreasing supply of natural resources and a rising concern over the economic costs of waste accumulation and pollution. They also believe that there is a growing awareness of environmental issues, which has led to an increase of environmental technology advances in recent years.
Ludgate’s chairman, John Shakeshaft, said: “The board and the investment team see the environmental/cleantech sector, in which companies tackle the world’s increasing environmental problems through the provision of technology and services, as an exciting and fast growing segment of the global economy.
“It therefore represents, in our view, one of the most compelling investment opportunities,” he added. “We are delighted to launch the fund to invest in this sector and will work to generate a significant level of capital growth in the medium to longer term.”
The IPO was managed by nominated adviser PwC with Fairfax I.S. plc acting as the broker. The reporting accountant was Saffery Champness, Guernsey with help from Saffery Champness Corporate Finance, the firm’s London-based corporate finance team.
Saffery Champness was introduced to the deal following a recommendation by one of its clients. Roy Angliss, who led the transaction for Saffery Champness, said: “This is a very positive step for Ludgate Environmental.”
Jersey legal advice was provided by Carey Olsen, which was led by partner Eve Kosofsky, senior associate James Fox and associate Neil Henderson.
“Jersey was the jurisdiction of choice for Ludgate as it has a fast-track Jersey listed fund regime, which enables closed-ended companies listed on recognised exchanges (which includes AIM) to qualify for a 72-hour approval process and flexible regulatory regime,” Kosofsky said.
“The new Jersey Unregulated Exchange Traded Fund regime to be introduced in early 2008 is expected to further cement Jersey’s reputation as a preferred jurisdiction for establishing listed companies.”
