Woodford Patient Capital Trust (WPCT) has raised the maximum sum it was seeking in its initial public offering (IPO) making it the largest ever UK domiciled investment company raising. The launch of the second fund for Neil Woodford's investment company was oversubscribed but applications have been scaled back by less than 10 per cent.
"Following the positive response from investors, the board took the decision to upsize the issue, knowing there is a very strong pipeline of investment opportunities requiring patient capital," said Susan Searle, chairman of Woodford Patient Capital Trust.
Woodford Patient Capital was originally targeting £200m with leeway to invest up to £500m, but increased this to £800m. Read more on this
When deciding to upsize the issue as well as investor appetite the managers and board had also to consider the amount of capital raised and the trust's investment rationale and remit. "We needed to select an appropriate figure well within the level needed to manage the investment strategy and deploy capital in the one to two year period outlined in the original prospectus," said Craig Newman, chief executive, Woodford Investment Management. "The board, in close consultation with Neil and his team, concluded that £800m was the optimum figure."
The trust will invest in early growth companies, typically quoted; and quoted and unquoted early-stage companies, which are expected to have a significant exposure to medical science. Woodford Investment Management says that the trust has more than 24 early-stage and early-growth stocks in the pipeline.
"To raise £800m to invest in a previously overlooked asset class is a tremendous endorsement of the patient capital strategy - and belief in our ability to identify the best, untapped growth opportunities with the aim of delivering exceptional long-term returns," said Mr Newman.
Woodford Patient Capital Trust starts trading on the London Stock Exchange on Tuesday 21 April.
Before the launch of Woodford Patient Capital Trust, the biggest UK domiciled investment company issue was Mercury European Privatisation which raised £549m in March 1994, according to the Association of Investment Companies (AIC). Other large raisings include Fidelity China Special Situations (FCSS) which launched in April 2010 and at the time was run by a similarly high profile manager, Anthony Bolton.
Largest UK domiciled investment company launches:
| Company | Total assets (£m) | Date of raising |
| Mercury European Privatisation | 549 | Mar-94 |
| Kleinwort European Privatisation | 481 | Feb-94 |
| Fidelity China Special Situations | 460 | Apr-10 |
| Mercury World Mining | 426 | Dec-93 |
| Britannic UK Income | 400 | Aug-01 |
Source: AIC
There have been larger investment company raisings on the London Stock Exchange but these have been by funds domiciled outside the UK. The greatest of these was Prodesse in 2005 which raised £1.48bn.
Largest non-UK domiciled investment company launches
| Company | Total assets (£m) | Date of raising |
| Prodesse | 1479 | Apr-05 |
| MW TOPS | 1015 | Dec-06 |
| F&C Commercial Property | 967 | Mar-05 |
| Kennedy Wilson Europe Real Estate | 910 | Feb-14 |
| Real Estate Opportunities | 840 | Jun-01 |
Source: AIC
