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Kingfish looks to raise $25 million

Friday 23rd July 2010

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Kingfish, Fisher Funds’ investment vehicle for NZX companies, is looking to raise some $25 million in the next two years through a warrant issue to investors.  

Shareholders will get one warrant for every two shares held, and can subscribe to new shares at a price of 95 cents when they exercise the warrants. That’s a premium of 4.4% to today’s share price of 91 cents. The final exercise date is expected to be Sept. 1, 2012.  

The record date for the issue is Aug. 30, and the investment statement and prospectus will be published shortly.  

The announcement comes after Carmel Fisher, the vehicle’s manager, told shareholders the vehicle will be in for more of the same this year, keeping more than half of its portfolio in listed companies with a market capitalisation of more than $500 million.  

“We have also been comfortable having a good exposure to some of the larger companies that tend to trade more often and be more liquid,” Fisher said.  “This is useful when we need to provide cash for the dividend payouts each quarter.”  Fisher said she does not “buy into the doomsday or double-dip predictions,” rather she expects a gradual economic recovery.  

Wakefield Health, which operates private hospitals, was a weak performer for the portfolio, though Fisher said she expects elective surgery numbers will increase and the company’s profitability will improve.  

Kingfish replaced its holdings in Rakon and Comvita with Tower and Kathmandu Holdings this year.  

The shares climbed 1.1% to 91 cents in trading today, and have slipped 3.2% this year.

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