Hipgnosis Songs Fund is elevating huge cash once more.
Based on a prospectus issued to the markets at this time (January 21) and reviewed by MBW, the UK-listed firm has proposed the issuance of as much as 1.5 billion shares – throughout an preliminary problem of abnormal shares, after which additional putting applications of latest abnormal shares and/or C class shares – over the course of the following 12 months.
On the present price of Hipgnosis’ abnormal shares (GBP £1.21 per share), a 1.5 billion share issuance would elevate over USD $2 billion.
Within the first occasion, says Hipgnosis, it would problem a most of 500 million abnormal shares at a price of £1.21 every, with potential gross proceeds of as much as £605 million (round $830 million).
It hasn’t introduced a particular goal for the amount of cash it needs to boost with that preliminary issuance, which is an uncommon – however not unprecedented – method from the corporate.
Immediately’s information comes 4 months after Hipgnosis raised £190m (round $242m) through the difficulty of a bunch of latest abnormal shares in its firm in September 2020.
As well as, earlier this month, Hipgnosis secured entry to a further USD $200m through a brand new settlement with the lenders behind its Revolving Credit score Facility.
No matter quantity Hipgnosis raises this time, it appears more likely to weigh in at a nine-figure sum. So what does it want the additional cash for?
Its prospectus at this time reads that Hipgnosis is at present eyeing “pipeline catalogs [with] a combined purchase price of over £1 billion”.
Hipgnosis says its funding adviser has “identified these catalogs from “well-known songwriters, recording artists and producers”, nevertheless it hasn’t but entered into any binding agreements to purchase them.
This definitely isn’t the primary time we’ve seen the Merck Mercuriadis-founded firm point out £1 billion in potential pipeline investments. But it surely tells us that Hipgnosis nonetheless sees loads of acquisitive alternative within the music rights market – and is hungry for extra.
In 2021 alone, Hipgnosis has introduced the acquisition of music rights from the likes of Neil Younger and Fleetwood Mac’s Lindsey Buckingham.
As well as, it’s purchased collections of producer royalty points from Jimmy Iovine and – as introduced at this time – Metallica collaborator Bob Rock.
The newest Hipgnosis prospectus additionally reveals some fascinating details about the agency’s institutional shareholder listing as of yesterday (January 20).
Hipgnosis’ largest institutional investor at present is Newton Funding Administration, with a 9.47% stake.
That is adopted by Aviva Buyers, with 7.2%, then Investec Wealth & Funding (RS) with 6.65%, and Schroder Funding Administration, with 4.76%.Music Enterprise Worldwide