Hipgnosis Songs Fund Limited
(“Hipgnosis” or the “Company”)
Proposed Placing
The Board of Hipgnosis, the first UK investment company offering investors a pure-play exposure to songs and associated musical intellectual property rights, and its Investment Adviser, The Family (Music) Limited, are pleased to announce that the Company intends to raise approximately £150 million by way of a placing of new Ordinary Shares (the “Placing”) at a price of 121 pence per Ordinary Share (the “Issue Price”).
The Company expects to use the net proceeds of the Placing to acquire a substantial pipeline of Songs that The Family (Music) Limited (the “Investment Adviser”) has identified in line with the Company's investment policy (the “Pipeline Songs”). The Pipeline Songs contain some of the most influential and successful Songs of all time, and offer substantial revenue growth opportunities through Song Management.
Merck Mercuriadis, Founder of The Family (Music) Limited and Hipgnosis Songs Fund Limited, said:
“I founded Hipgnosis to give the investment community access to extraordinarily successful hit Songs by culturally important artists and to establish Songs as a new and uncorrelated asset class with attractive risk-adjusted returns. Three years after our IPO the support of our shareholders has allowed us to build a portfolio of songs with a value over $2.2 billion and Hipgnosis has delivered a Total NAV Return of 40.7% against the most challenging social and economic backdrop of our lives. This success has firmly established Songs globally as one of the most attractive new asset classes.
This raise gives our public markets investors, historic and new, the only chance for the next 12 months to get access to Hipgnosis' existing portfolio as well as a pipeline comprising some of the most important and successful songs of all time, at valuations that are highly attractive considering the continued explosive growth of streaming that will magnify future revenues considerably.”