Global Diversified Infrastructure IPO cancelled – On 1 March 2018, Global Diversified Infrastructure Plc (GDIV) announced the publication of a prospectus in relation to a proposed IPO that included a placing, offer for subscription and intermediaries offer and the admission of its shares to trading on the main market for listed securities of the London Stock Exchange. However, on 17 April 2018, GDIV announced that the proposed IPO had been cancelled.
Challenging conditions for raising equity capital
GDIV says that, while the proposed Issue had received a positive response from potential investors, current market conditions represent a challenging background in which to raise equity capital It also that, on the basis of indicative commitments received by GDIV, which were “close to the minimum gross proceeds required of £75 million”, neither the Directors nor Gravis Capital Management (then investment manager) believe that an appropriate level of diversification will be achievable. Accordingly, it has been decided that the issue will not proceed.
The announcement says that the directors and Gravis Capital Management are mindful of their commitment to provide investors with access to a globally diversified portfolio of infrastructure investments.
GDIV’s investment proposition
Global Diversified Infrastructure (GDIV) was to be a new investment trust from Gravis Capital Management. Other London-listed infrastructure funds have a strong bias towards UK-based infrastructure investments. However, GDIV was to allow its shareholders to diversify their investment across a number of other countries and types of infrastructure asset. GDIV was to target a long-term, and often inflation-linked, returns of 8%-10% per annum. In its first year, GDIV was planning to pay a dividend of 3p per share which it aimed to grow to 4.5p in the second year.
Global Diversified Infrastructure IPO cancelled : GDIV