Hipgnosis launches latest fundraise – On 12 June 2020, Hipgnosis Songs Fund Limited announced that its investment adviser was in active discussions on a pipeline of catalogues with an acquisition value of over £1bn and that the company was therefore exploring raising additional funding for further investments. Accordingly, today it has announced its intention to raise a target of £200 million by way of a placing of new C shares at a price of 100 pence per C share. The company currently expects to deploy the net proceeds of the issue within three months.
To date, Hipgnosis has acquired 54 catalogues, diversified by vintage and genre, which are built around proven hit songs with a track record of producing reliable, predictable and uncorrelated cash flows. The portfolio, which was independently valued at £757m as at 31 March 2020, includes five of Billboard Magazine’s “Top 10 Songs of the Decade” (including 4 of the Top 5) and 8 of Spotify’s 30 most streamed songs of all time.
Results for the year ended 31 March 2020 will be announced tomorrow.
N+1 Singer Advisory LLP and J.P. Morgan Securities plc (which conducts its UK investment banking activities as J.P. Morgan Cazenove) (“JPMC”) are acting as joint bookrunners in connection with the placing.
PrimaryBid is managing an offer of shares to retail investors. This is welcome, however, there are limitations to this process as we discussed in our recent article on Gore Street Energy Storage.
SONG : Hipgnosis launches latest fundraise