Valeria Martinez, Investment Week, 27 June 2023:
Shareholders of the Chrysalis investment trust will be able to take part in a continuation vote by April 2024, with options including a potential managed exit on the table, as its five-year IPO anniversary approaches.
In the trust’s interim results published today (27 June), chair Andrew Haining said shareholders will have an option at the AGM to vote on whether realisation proceeds should be reinvested and if so, how much and over what period of time…
In a research note, Stifel analysts Iain Scouller, Sachin Saggar and William Crighton said it was “too early” to pre-judge the outcome of this vote at this stage…
Over the course of the reported six months, the managers made follow-up investments totalling around £25m, including primary investments of £1.4m and £3.6m in InfoSum and Wefox as well as the £20m purchase of secondary stock for Starling Bank…
In a research note, QuotedData co-founder and head of investment companies research James Carthew said that with the trust’s share price at 65.3p last night and a slight narrowing of the discount, Chrysalis “may have already turned a corner”.
“The manager’s efforts are on ensuring that as much of the portfolio as possible can stand on its own feet without the need for further funding, and conserving cash to support portfolio companies makes sense in that regard,” he said.
“A disposal – through an IPO or a trade sale – would likely be transformational for this fund, it would help validate the NAV and could result in a substantial re-rating. It might also help secure a future for the fund beyond the scheduled continuation vote.”
Read more here