The UK’s International Public Partnerships (INPP) has collected £95 million (€119 million; $148 million) from its latest share issue, beating its original target of £70 million.
The fund sold 70.37 million ordinary shares of 0.01p by way of a tap issuance, deciding to increase the size of the transaction beyond its initial objective “in light of the strong pipeline of investments and intention of using the proceeds to reduce the company's current debt facility”, it said in a statement.
The placing was significantly oversubscribed, according to the firm, with demand for approximately £125 million from both existing and new investors. The new shares will be issued at 135 pence per share, which represents a discount of 2.95 percent to the price at the time of the fundraising announcement on 5 November.
“The successful capital raise follows a period of significant investment activity for INPP, including the recently closed Lincs offshore transmission project, the company's single largest investment to date. There was strong demand from existing and new investors for the Issue, demonstrating continuing support for INPP and confidence in the return profile of its diversified portfolio and infrastructure as an asset class,” said Rupert Dorey, INPP’s chairman, in a statement.
The firm’s portfolio includes 112 social and transport infrastructure projects, including schools, hospitals, courts, police headquarters, transport and renewable energy projects in the UK, Europe, Australia and Canada. It is advised by Amber Infrastructure, a London-based fund manager.
INPP said earlier this month that it expects to provide £78 million in funding to Priority Schools Building Programme projects being rolled out in the UK over the next 12 months. The news came days after the company reached financial close for its £171 million investment in the Lincs offshore transmission (OFTO) project.