Soaring demand drives £330m to INPP

The listed fund had to turn some investors away from its open offer due to the size of the demand for the placing, which was originally set at £250m.

London-listed infrastructure firm International Public Partnerships has secured £330 million ($426.5 million; €391.4 million) in a “significantly oversubscribed” new share placing.

The Amber Infrastructure-managed fund informed the market last month about its open offer, which had an initial target of £250 million. However, following strong demand from both new and existing investors, the company raised the maximum to £330 million, issuing at 150 pence per share.

The proceeds will be used to repay INPP’s £400 million credit facility, some £255.5 million of which has been drawn and a further £86.5 million committed in letters of credit. The funds will also go towards the financing of acquisitions, some of which have already been committed to.

“The significant oversubscription of INPP’s latest capital raising demonstrates the continued demand for the company’s investment case, in providing shareholders with predictable, long-term and substantially inflation-linked returns from investment in long-term assets,” said chairman Rupert Dorey. “The company continues to offer its shareholders a highly visible and balanced pipeline of new opportunities, the outlook for which remains strong.”

Investments recently made by INPP include its 4.4 percent stake in the National Grid Quad Gas consortium and its purchase of an additional 16 percent stake in a UK school refurbishment project, respectively announced in December and last week.

INPP said the placing was heavily supported by existing investors, some 93 percent of which took up the option of the offer and its excess facility. It said this meant “a significant scaling-back exercise” and forced the firm to turn away demand from both existing and new investors.

“In undertaking the allocation process the company has made every effort to balance the needs between current and prospective shareholders with particular reference to those existing long-standing investors who have supported the company through its growth,” it explained.