IMF Bentham calls $84m raising to seize litigation trends

IMF Bentham calls $84m raising to seize litigation trends

Global litigation funder IMF Bentham (ASX: IMF) is preparing to raise over $84 million to prepare for a range of opportunities presently in reach for the company.

The listed company will conduct a fully underwritten institutional placement to raise $74.48 million, comprising an issue of 26.6 million new IMF ordinary shares.

The group also plans to conduct a non-underwritten share purchase plan to facilitate retail shareholder participation of up to $15,000 per eligible shareholder, subject to an overall cap of $10 million.

The total amount of money raised will go towards growth initiatives according to IMF managing director Andrew Saker.

"The equity raising will allow us to take advantage of the numerous opportunities that are currently before IMF," says Saker.

"We are seeing strong pipelines in all jurisdictions and IMF is targeting two new funds (a US fund and a non-US fund) with the aim of having close to $1.5 billion in funds under management by the end of FY19."

"We believe it is a prudent time to fund IMF's future expected commitments to these funds and expansion growth plans, while also increasing financial flexibility."

The company hopes to be able to expand its existing operations in Asia and Canada following the raise and will also establish a footprint in continental Europe.

The placement, which represents 15 per cent of the current ordinary shares on issue, represents a discount of 10 per cent to the closing price of $3.11 per share on 22 October 2018.

This year, IMF Bentham has been bankrolling a number of high-profile class actions. Of note is its involvement in the shareholder class action against Sirtex which resulted in the Australian Securities and Investment Commission charging Sirtex CEO Gilman Edwin Wong with insider trading.

The litigation funder is also backing a class action against Retail Food Group by Phi Finney McDonald one of three against the retail food franchisor.

Perhaps the most high-profile class action being funded by IMF is against AMP. The class action arose from allegations made during the Royal Commission into the banking and finance sector.

Never miss a news update, subscribe here. Follow us on Facebook, LinkedIn, Instagram and Twitter.

Business News Australia

Enjoyed this article?

Don't miss out on the knowledge and insights to be gained from our daily news and features.

Subscribe today to unlock unlimited access to in-depth business coverage, expert analysis, and exclusive content across all devices.

Support independent journalism and stay informed with stories that matter to you.

Subscribe now and get 50% off your first year!

Four time-saving tips for automating your investment portfolio
Partner Content
In today's fast-paced investment landscape, time is a valuable commodity. Fortunately, w...
Etoro
Advertisement

Related Stories

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

“Not our desired outcome”: Telix withdraws from $300m Nasdaq IPO

Telix Pharmaceuticals (ASX: TLX), one of the nation’s largest...

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

CommBank joins new ‘intelligence loop’ to combat SMS phishing scams

In an effort to reduce the number of SMS phishing scam victims...

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Stralis Aircraft secures funding to make commercial hydrogen planes a reality

Brisbane-based Stralis Aircraft has become one step closer to its a...

‘Gone the long yards’: Luxury boatbuilder Maritimo a stayer in local manufacturing

‘Gone the long yards’: Luxury boatbuilder Maritimo a stayer in local manufacturing

In an era when Australia’s mass-production car industry is a ...