HICL looks to raise £180m

The London-listed infrastructure investment vehicle yesterday launched a share issue designed to raise £180m in equity capital for the firm to invest in new opportunities. It may seek to raise as much as £250m under certain circumstances.

HICL Infrastructure Company, the investment vehicle listed on the London Stock Exchange, yesterday launched a placing, open offer and offer for subscription for 180 million C shares priced at £1 per share. The firm had last month flagged its intentions to undertake such an issue.

In a statement announcing the issue, the firm said it has a target size of £180 million (€215 million; $287 million) before expenses.  It added that “in any event” net proceeds would not exceed the aggregate of: the group’s funding requirements (£139 million); consideration payable for a conditional investment (£39 million); and consideration payable for any additional investments “which the company expects to acquire prior to admission” including one for £15 million.

The statement said the firm was reserving the right to increase the size of the issue up to a maximum of £250 million “in circumstances in which additional investments are made or identified and overall demand for C shares exceeds the target amount”.

The firm said it expected to receive completed application forms and payment under the offer for subscription by 1pm on 22 March. The timetable is expected to conclude with the conversion of C shares into ordinary shares by the end of April.

“The market environment for new investments remains favourable and the new equity capital that we are seeking to raise will leave us well positioned to take advantage of suitable opportunities,” said HICL chairman Graham Picken in the statement.

HICL has 70 PFI and PPP investments in its portfolio in total. It is advised by InfraRed Capital Partners, which spun out from HSBC in April last year and closed an oversubscribed $1.2 billion fund focusing on greenfield infrastructure in October.