london stock exchange welcomes smithson investment trust to the main market
Today London Stock Exchange welcomed Smithson Investment Trust (Smithson) to celebrate its launch and admission to the main market, having raised £822 million through an Initial Placing, Offer for Subscription and Intermediaries Offer.
Smithson’s investments will be focused on a global basis on small and medium sized companies between £500 million and £15 billion in market capitalisation, and an average of £7 billion. The Company’s investment manager will be Fundsmith LLP, a fund management company established in 2010 by Terry Smith which currently manages over £18 billion.
The Smithson investment management team will be led by Simon Barnard as investment manager and Will Morgan as assistant investment manager. In addition, Terry Smith, in his capacity as Chief Investment Officer of Fundsmith, will also provide advice and support to Simon and Will, who will look to draw on Terry's decades of investment experience and expertise. Jonathan Imlah will also assist as research analyst.
Mark Pacitti, Chairman of Smithson, commented:
“I am delighted Smithson is listing on the main market of the London Stock Exchange, having received considerable support from a broad range of investors. A listed investment trust is more suitable for Smithson given it will invest in small and mid cap companies that tend to be less liquid, we can control the size of the fund and we won’t be forced to buy or sell based upon investor flows. I am grateful for Fundsmith’s innovative step to absorb all the issue costs as the investment manager which removed the concern that investors participating in the IPO would be subject to an initial loss from these costs.”
Investec Bank plc acted as sole sponsor, bookrunner, broker and intermediaries offer adviser in relation to the Initial Issue and are the Company's sole broker.