Australia-based L1 Gold Fund Ltd is seeking to raise up to A$1 billion ($701 million) in an initial public offering in Australia, according to a prospectus dated Monday.
L1 Gold Fund is offering 250 million to 500 million shares in a fresh issue at A$2 each, to raise gross proceeds of A$500 million to A$1 billion.
The company said it would invest mainly in gold-related securities and, at times, other precious metals, using both long and short positions. It said the aim is to deliver positive absolute returns over the medium to long term.
The company said proceeds from the offer would be used for investments in line with that strategy.
It also plans to acquire part or all of the portfolio of the unlisted Wholesale L1 Capital Gold Fund around the time of the offer, with remaining proceeds to be invested after listing.
The prospectus said the broker offer is expected to open on March 24 and close on March 30, with shares due to begin trading on April 24.
The listing comes at a time when gold prices are high due to demand for the precious metal as a hedge amid global geopolitical uncertainty.
L1 Capital will manage the fund. The prospectus said founders Raphael Lamm and Mark Landau had each agreed to invest A$50 million in the offer.
($1 = 1.4276 Australian dollars)
Reuters
