Hipgnosis Song (SONG) has announced plans to raise up to £250m through an ordinary share placing, at a price of 116p. We note that on 9 September SONG announced that it had invested approximately 82% of the net proceeds from its July C share issue. Since then, SONG acquired several more catalogues including Chrissie Hynde, Rick James and Steve Robson. SONG’s manager is in discussions to acquire further catalogues with an aggregate consideration of more than £1bn.
Highlights from the announcement
The issue price of 116p represents a 7.9% discount to the closing share price of 126 pence on 18 September 2020 and a 3.6% premium to the adjusted operative NAV of 111.98p per share. The proceeds of the issue are expected to be used to fund the acquisition of a pipeline of catalogues with a blended acquisition multiple of approximately 18x historic annual income. SONG’s manager is in discussions on further catalogues with an aggregate consideration of more than £1bn.
SONG also makes retail offer with the aim of raising £4m
In conjunction with the placing, SONG has announced there will be an offer made on the PrimaryBid platform to issue ordinary shares to provide retail investors with an opportunity to participate in the equity fundraising alongside institutional investors. Further detail is available on the RNS announcement, which can be accessed here.
SONG: Hipgnosis Songs looks to raise £250m in placing with a pipeline of more than £1bn, also makes separate offer to retail investors