Harmony Energy Income Trust has published its prospectus
You can access this here
Application forms are towards the back of the document.
Access to the IPO is restricted by geography. In particular, you should not be accessing this from the USA.
Please ensure that you read the prospectus including the risk warnings before making an investment.
£15.8m of an expected £230m fundraise will be used for listing expenses and working capital expenses. That’s 6.9% of the funds raised. Isn’t that very high relative to other newly listed Investment Trusts? What kind of hit will that have to the NAV?
On page 8 of the prospectus, it says that the expenses of the initial issue are limited to 2% of the gross proceeds. That would give an opening NAV of 98p, which is fairly common for new investment companies (that is reiterated on page 91). On that basis, £4.6m of the £15.8m would be applied to issue expenses and £11.2m would go towards working capital (which forms part of the NAV until it is spent). Ongoing expenses are estimated at 1.3% per annum (these seem reasonable). Since it takes a while for the portfolio to become established and start generating income, there has to be sufficient working capital to fund these ongoing expenses for a while. It may also be the case the the initial dividends are paid out of capital, but the seed assets should help offset that. Hope that helps.