- Pantheon Infrastructure IPO open to private investors
- LSE admission is expected in mid-November
Private equity group Pantheon Ventures is hoping to tap investor demand for real assets and raise £300m for a diversified infrastructure investment trust, targeting everything from digital infrastructure such as subsea cabling and data centres, to renewables projects, schools and hospitals.
Pantheon Infrastructure, to trade under the ticker PINT, plans to give investors exposure to both growth infrastructure assets and high-yielding projects across the UK, Europe and the US, aiming at annual net asset total returns of between 8 and 10 per cent.
The company is also targeting an initial dividend of at least 2p per share in the first financial year ending in December 2022, rising to 4p the following year. Pantheon says it already has a pipeline of co-investment opportunities “in active diligence” of over £1bn as at 8 October and will seek to assemble a portfolio of eight to 12 assets within a year of the initial public offering (IPO).
The investment manager, which has £52.4bn of alternative assets under management, said the investment trust was targeting sectors desperate for new spending.
“The opportunity in infrastructure today is significant, with a projected $13tn shortfall in capital expenditure globally needed to improve ageing infrastructure and build new projects by 2040,” Pantheon said in a statement.
The intention to float comes on the heels of a bumper year for infrastructure funding. Renewable energy infrastructure trusts alone have raised £2.14bn across three IPOs and several secondary raisings. The first two digital infrastructure trusts, Cordiant Digital Infrastructure (CORD) and Digital 9 Infrastructure (DGI9), listed just this year and each has raised additional capital since IPO.
However, not all have been successful. Blackfinch Renewable European Income postponed its IPO earlier this month as it struggled to raise sufficient funds in a crowded market.
The majority of social and digital infrastructure trusts trade on double-digit premia to net assets, with an average 7 per cent premium for renewable energy trusts, according to Winterflood data. Subscription at IPO can be the best way to access these products. The details of this Pantheon infrastructure trust and how to sign up will be available once the prospectus is released.
