GQG to float on ASX
US-based investment manager GQG Partners is set to float on the Australian Securities Exchange (ASX) as an initial public offering (IPO).
In a statement from Pacific Current Group (PAC), which was an investor in GQG, to the ASX 20% of GQG’s common stock was being offered to investors in the form of CHESS Depositary Interests (CDIs).
These CDIs would comprise beneficial interests in shares of common stock in GQG.
It was expected this could raise as much as $1.2 billion, according to reports, and value the company between $5.9 billion to $6.5 billion. Currently, the largest IPO this year had been PEXA which raised $3.3 billion.
PAC first invested in GQG in 2016 and received a preferred interest that entitled it to 10% of GQG’s annual net revenue between US$5 million to US$50 million ($6.8 million to $68 million) and 2% of net revenue thereafter.
Following the IPO, this would change to 4% of the common stock of GQG to be held in escrow until late August 2022 and cash in an amount of 1% of the value of GQG at the IPO price, assuming the offer was subscribed in full, less transaction costs.
Paul Greenwood, PAC chief executive, and Melda Donnelly, PAC executive director, would become directors of GQG.
GQG was set up by Rajiv Jain in 2016 and opened an Australian office in 2018. It ran a range of global and emerging markets funds and strategies which had $84 billion in assets under management.
AUTHOR
Laura Dew
Recommended for you
Grant Hackett has been promoted from CEO of Generation Life to head up the wider Generation Development Group.
Tribeca Investment Partners has made a distribution hire from Australian Ethical in a newly-created role focused on the national intermediary market.
Asset managers may be urged to diversify their product ranges, but investment executives have warned any M&A deal should avoid simply filling gaps and instead consider long-term value creation.
Specialist wealth platform provider Mason Stevens has become the latest target of an acquisition as it enters a binding agreement with a leading Sydney-based private equity firm.
