DRI Healthcare PLC (DHP), a new closed end investment company that is focused on investments in healthcare royalty assets has published a prospectus in relation to an initial public offering (IPO) of shares on the premium segment of the main market of the London Stock Exchange.
In summary:
- The company is seeking to raise $350m to invest in healthcare royalty assets, concentrating on investments in best-in-class pharmaceutical products indicated for treatment of serious and chronic conditions.
- The target dividend is set to be 7.0c (5.5c in first financial year) with the intention to progressively grow over the medium term, and base case target net total NAV return of 8% – 10% with upside potential. The company will target long term leverage of 25% of GAV (max 50% GAV at the time of drawdown).
- A seed asset portfolio has been identified, consisting of 20 cash flow generating healthcare royalty assets with an aggregate NAV of $290m. Additionally, the manager (DRI Capital, Inc.) intends to invest up to $20m in the initial issue.