ZOPA-BACKER Augmentum Fintech is planning to issue extra ordinary shares in its investment trust as it looks to fund around £300m of potential opportunities in the sector.
The fintech investment trust, which has its largest holding in peer-to-peer lender Zopa, raised £94m in an initial public offering (IPO) last year. It said in a stock market update on Tuesday that it has now “substantially fully committed the net cash proceeds of the IPO.”
The update said there are several follow-on opportunities and a pipeline of approximately £300m, which could be funded through new shares.
“There is clear demand for patient capital with sector focus and expertise in the fintech market, and the company expects to issue further ordinary shares in due course in order to continue the growth in its portfolio,” it said.
A spokesperson was unable to comment on whether this would mean the establishment of a new share class.
Tim Levene, chief executive of Augmentum Fintech, said the fund has become one of Europe’s preeminent investors in less than a year.
“We have now substantially fully committed the initial proceeds from the IPO, across a portfolio that represents the very best in European fintech,” he said.
“Augmentum remains the only UK listed fund that exclusively invests in the fintech sector, and as a closed-end fund we are able to provide patient capital. This means that we can commit to support fintech companies at a crucial stage in their early development.
“The wider UK capital markets’ lack of exposure to fintech venture capital remains a challenge for the sector’s ecosystem.
“Augmentum has created a structure that gives investors a more straightforward opportunity to access this emerging asset class through investment in a public company.”
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30.8 per cent of the Augmentum Fintech portfolio is invested in Zopa, which is valued at £22m.
Other holdings include Seedrs, Unmortgage and Monese.
It is currently trading at a premium to net asset value of 4.3 per cent.