News: Contango Income Generator to raise $100M through IPO

Contango Income Generator seeks to invest in stocks outside of the ASX Top 30 to provide shareholders with a sustainable income stream of dividends with some capital growth over time.

The company is seeking to raise a minimum of $30 million and a maximum of $100 million through an initial public offering priced at $1.

It also reserves the right to accept oversubscriptions under the Offer to raise up to an additional $20 million.

Contango’s policy is to pay annual dividends of not less than 6.5% of its net tangible asset (NTA) value per Share.

The company’s sole shareholder at the date of the prospectus, Contango Microcap Limited (ASX:CTN), has agreed to subscribe for 30 million shares (and 15 million loyalty options).

CTN has no present intention to sell the shares in the medium term or a proportion of the Loyalty Options once they vest.

The company’s investment portfolio will be managed by Contango Asset Management, a specialist funds manager and wholly-owned subsidiary of CTN.

Contango Asset Management and CTN have approximately $833 million in funds under management as at 31st May 2015.   

The manager aims to buy and hold individual stocks for the longer term while managing the portfolio with sensitivity to economic and market factors as well as stock specific considerations.   

The Investment Manager will also provide the necessary administrative and accounting services as required by the company under the Investment Management Agreement.

The company will trade under the ASX code CIE.