L1 Long Short Fund Ltd (ASX:LSF) shares are expected to commence trading on the ASX next Tuesday after a successful initial public offering (IPO) priced at $2 per share.
The original prospectus for the IPO outlined a minimum of 50 million shares ($100 million raise) and maximum of 300 million shares ($600 million raise).
After overwhelming demand, the listed investment company (LIC) issued a supplementary prospectus to allow it to increase the maximum to 675 million shares or $1.35 billion.
IPO raises $1.32 billion, more than double original maximum
In the end, 664.8 million shares were issued priced at $2 raising $1.329 billion.
The L1 Long Short Fund has been established to invest in a portfolio of predominantly Australian and New Zealand securities with up to 30% of the gross exposure allowed in global securities.
The company’s portfolio will be managed by L1 Capital Pty Limited, which was founded in 2007 by Raphael Lamm and Mark Landau.
The manager had $3 billion of funds under management at the end of 2017.
Looking to replicate the success of the unlisted fund
The manager’s existing unlisted L1 Capital Long Short Fund has a strong track record of historical performance.
It has delivered an average compound return of 36.9% per annum after fees since it was launched in September 2014.
The same investment strategy and processes employed by the manager for the existing unlisted L1 Capital Long Short Fund will be applied to this LIC.
The new fund will be subject to a 1.4% management fee and performance fee equal to 20% with a high watermark.