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HICL targets £205m in first open offer in four years

The placing will be used to fund investments over the coming months as well as pay for the firm’s first deal in the US agreed last year.

UK-listed fund HICL Infrastructure Company has revealed its intention to raise £205 million ($257 million; €242.6 million) by way of its first open offering of shares since 2013.

The size of the placing could rise up to £260 million should there be sufficient demand, HICL added, with shares to be priced at 159p per ordinary share.

The announcement follows on from the vehicle’s statement last month in which it outlined a funding surplus of £6 million as well as investment commitments of £200 million. This includes its agreement to acquire a 33.3 percent stake in a toll road in Colorado for $166 million, marking the fund’s first transaction in the US, and fresh investments totalling £50 million.

HICL also acknowledged last month that it has not afforded investors the opportunity to take part in an open offer since February 2013, when it raised £167 million in an oversubscribed placing that had to be scaled back. It has instead made a series of tap issuances to help with ongoing funding requirements.

“We believe that the pipeline of potential new business remains healthy and that further attractive investment opportunities will arise in the coming months,” said HICL chairman Ian Russell. “The issue will leave the company best placed to take advantage of those opportunities, and thereby further to develop the portfolio.”

The placing is also set to be the company’s largest fundraise since it collected £250 million in 2012 from a share placing. It had originally set out to target £180 million at the time.

Some 85 percent of HICL’s 114-project portfolio is based in the UK, valued at £2.4 billion. As well as its recent deal in the US, the portfolio also extends to Ireland, France, the Netherlands, Canada and Australia. It largely comprises operational PPP assets.