Fund’s IPO raises £105m for Asia’s water, waste, energy sectors

The London Stock Exchange-listed Impax Asian Environmental Markets will invest in listed companies with operations in Asia.

Impax Asian Environmental Markets, a closed-ended fund, has raised £104.5 million ($170 million; €113 million) via an initial public offering (IPO) on London Stock Exchange’s Alternative Investment Market.

The fund is UK’s largest environmental markets fund and its IPO is the London Stock Exchange’s largest investment company IPO since July 2008, according to a statement from London-based Impax Asset Management Group, its investment manager.

The Asia Pacific-focused fund will primarily invest in listed companies involved in water treatment and pollution control, waste technology and resource management and alternative energy sources. While there are no limits on the number investments in the fund’s portfolio, it is likely that its initial portfolio will comprise of equities in between 30 and 60 companies, according to the fund’s prospectus.

The fund is particularly interested in companies based in China, Japan, Singapore, Hong Kong, India, South Korea, Malaysia, the Philippines, Thailand, Taiwan, Australia and New Zealand.

“We believe that the key drivers of the Asia environmental markets – market liberalisation, tightening environmental policy and falling costs of new technology – will continue to generate highly attractive investment opportunities,” Allan McKenzie, the fund’s chairman, said in the statement.

The fund will leverage on its relationship with Ajia Partners, a Hong Kong-based investment manager. It will be managed by Bruce Jenkyn-Jones, an Impax managing direct and Ajia Partners’ David Li, Impax said.

Impax Asset Management Group, formerly known as Impax Group, is currently investing Impax New Energy Investors, a private equity fund which closed on €125 in August 2006. This fund targets solar, wind and renewable power generation projects and assets mainly in Europe.

Set up in 1994, the group is focused on the environmental sector and manages a range of closed- and open-ended funds and segregated accounts on behalf of institutional and private investors.