Hipgnosis Songs Fund Limited raise £190 million
Hipgnosis Songs Fund Limited and its Investment Adviser, The Family (Music) Limited, are pleased to announce that the Company has successfully raised total gross proceeds of £190 million at a price of 116p per Ordinary Share.
The net proceeds of the Issue are expected to be used to fund the acquisition of a significant pipeline of catalogues with a blended acquisition multiple of approximately 18x historic annual income. The Investment Adviser believes that the Pipeline Catalogues include some of the most influential hit songs of each of the past six decades which offer significant Song Management opportunities and will further diversify the Company’s income by artist, genre and vintage.
This is the second equity raise Singer Capital Markets has supported Hipgnosis with this year, raising a total of £420 million in two months and over £1 billion since their IPO in July 2018 and SONG is now a FTSE 250 constituent.
Merck Mercuriadis, Founder of Hipgnosis Songs Fund Limited, commented:
“To raise £190 million in 72 hours and £420 million in two months during a pandemic is the greatest endorsement from the investment community for Hipgnosis and proven songs as an asset class. The uncorrelated returns songs provide have been very important to our shareholders during these difficult times and have only reinforced the belief in our thesis which has now become reality.
We have made a tremendous impact on the songwriting community through our acquisitions and by pushing the agenda to improve the songwriter’s position in the economic equation. This has helped make us the buyer and custodian of choice amongst songwriters who are constantly providing us with exciting opportunities for pipeline.
We will carry on with the course we have set for the last two plus years that has made us a FTSE 250 company. We will deploy quickly in the finest songs, we will actively manage them better than before and provide our great investors with a strong return all the while pushing forward the agenda of the songwriter.“
Singer Capital Markets is acting as Sponsor and Financial Adviser to Hipgnosis.
About Hipgnosis Songs Fund Limited
Hipgnosis, which was founded by Merck Mercuriadis, is a Guernsey registered investment company established to offer investors a pure-play exposure to songs and associated musical intellectual property rights. The Company has raised a total of over £1.05 billion (gross equity capital) through its Initial Public Offering on 11 July 2018, and subsequent issues in April 2019, August 2019, October 2019, July 2020 and September 2020. In September 2019, Hipgnosis transferred its entire issued share capital to the Premium listing segment of the Official List of the FCA and to the London Stock Exchange’s Premium segment of the Main Market.
Our work with Hipgnosis Songs Fund Limited
Singer Capital Markets have supported Hipgnosis Songs Fund from their IPO in July 2018, which raised over £200 million on admission to the London Stock Exchanges’ Specialist Fund Segment, and further follow-on equity raises including £141.5 million raised in April 2019, £51.1 million raised in August 2019, £231 million raised in October 2019, £236.4 million raised in July 2020 and £190 million in September 2020.
Market Cap: £989.2 million*
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*As at 24/09/2020