Asset manager schedules IPO

K2 Asset Management Holdings is planning to list on the ASX during November, with 9 per cent of the fund manager being offered to investors.

This is the fund manager’s second attempt at listing, the previous offer was withdrawn during August due to market volatility.

Under the new float, shares will be offered at $1.05 and K2 hopes to raise $20.476 million.

After listing, K2 directors will hold 77.6 per cent of the fund manager while K2 staff will hold 4.6 per cent.

There are some existing external shareholders that hold 8.8 per cent of the company, which will have 217.8 million shares at listing, giving K2 a market capitalisation of $228.6 million.

The boutique fund manager was formed in 1999 and specialises in absolute return strategies in Asian, Australian and international equities for Australian and offshore investors.

K2 executive director Campbell Neal said listing would raise the profile of the boutique manager, which will also help attract key investment personnel with the ability to offer share packages.

“We think the future is strong for absolute return specialists and the investing public is becoming more educated about how absolute return strategies create an attractive investment strategy in volatile markets,” he said.

“We are determined to maintain the strong alignment that is inherent in a manager run by people who have a stake in the business, and we want to apply that alignment to a larger fund.”

K2 has more than $670 million of funds under management, including directors’ personal investment monies.

The share offer for K2 opens on November 1 and closes on November 19. The fund manager hopes to list on November 29.