November 2, 2018 / 7:26 AM / 19 days ago

Merian fund raises half intended capital in 'challenging' London IPO

LONDON (Reuters) - Merian Chrysalis Investment Company IPO-MER.L, a fund investing in mature but unlisted firms, said on Friday it had raised 100 million pounds via a listing on the London Stock Exchange - half the amount intended.

Britain has proven a tricky climate for firms looking to list in recent months, with even prominent IPOs like carmaker Aston Martin (AML.L) struggling and numerous others being pulled altogether.

Merian Chrysalis Investment Company is a new fund from asset manager Merian Global Investors, run by veteran British investor Richard Buxton, and its first devoted to unlisted firms.

In its prospectus, published earlier in October, the fund said it had hoped to raise 200 million pounds from the issue.

Richard Watts, co-fund manager, said in a statement the outcome was a result of a difficult IPO market, adding that there was significant interest in the asset class, the fund’s strategy and a strong pipeline of private investment opportunities.

“Despite challenging market conditions - following the global sell-off in October, and investors adopting a cautious outlook - we are pleased to have raised £100 million at launch,” he said.

Merian Chrysalis’ admission to the LSE is expected to become effective from Nov. 6, with 100 million shares in issue.

Merian Global Investors is the new name of Old Mutual Global Investors, which was re-branded in August after being bought out by Buxton in partnership with TA Associates.

Reporting by Emma Rumney; editing by Simon Jessop and Emelia Sithole-Matarise

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