Hipgnosis Songs taps the market as it eyes more evergreen songs catalogues

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Hipgnosis Songs Fund Limited (LON:SONG), which invests in song catalogues, is to raise up to GBP250mln by placing shares at 116p a pop.

Retail investors will also get a chance to buy new shares in Hipgnosis at the same price, which could raise an additional GBP4mln or so for the investment company.

Hipgnosis said up to 216mln shares will be placed while up to 3.6mln shares will be made available to retail investors.

The net proceeds from the share issue are expected to be used to fund the acquisition of a significant pipeline of catalogues with a blended acquisition multiple of roughly 18 times historic annual income.

Hipgnosis’s investment adviser is also in discussions on further catalogues with an aggregate consideration of more than GBP1bn.

“We have made a significant impact on the songwriting community over the last 2 plus years and the overwhelming love and support we have from these great creators has led to further opportunities on evergreen songs and catalogues. I would like to thank all the songwriters, artists and producers that have made us first choice to look after your incomparable legacies,” said Merck Mercuriadis, the founder of Hipgnosis Songs Fund Limited in a statement.

Shares in Hipgnosis were down 4.8% at 120p in early deals.

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