FCAM’S bond IPO records 144.44% over­sub­scrip­tion

The Punch - - CAPITAL MARKET -

LEGACY USD Bond Fund, a mu­tual fund man­aged by First City As­set Man­age­ment Lim­ited, has recorded a 244.44 per cent sub­scrip­tion in its ini­tial pub­lic of­fer­ing.

The re­sult of the IPO, which has been ap­proved by the Se­cu­ri­ties and Ex­change Com­mis­sion, im­plies the fund at­tracted $6.111mn.

This rep­re­sents an over­sub­scrip­tion of 144.44 per cent above the $2.5mn of­fered to prospec­tive unithold­ers dur­ing the of­fer pe­riod from Jan­uary 8, 2018 to Fe­bru­ary 14, 2018.

Ac­cord­ing to a state­ment by the firm, the de­vel­op­ment is an in­di­ca­tion of the level of in­vestor con­fi­dence in the Legacy USD Bond Fund and FCAM, a mem­ber of FCMB Group Plc.

The Legacy USD Bond Fund is an open-ended in­vest­ment ve­hi­cle reg­is­tered with the SEC and man­aged by FCAM.

It gives in­vestors the op­por­tu­nity to in­vest in dol­lar­de­nom­i­nated fixed in­come se­cu­ri­ties on a con­tin­u­ous ba­sis.

It also pro­vides flex­i­bil­ity with re­spect to the tim­ing of in­vest­ments in, and re­demp­tions from, the fund.

The ob­jec­tive of the Legacy USD Bond Fund is to gen­er­ate sta­ble in­come over the longterm.

The fund is be­ing man­aged as a unit trust scheme de­signed for in­vestors seek­ing an ef­fi­cient way to earn sta­ble in­come in the United States dol­lar, from in­vest­ing in a port­fo­lio com­pris­ing of high qual­ity, reg­is­tered, and trade­able US dol­lar fixed in­come se­cu­ri­ties. In a state­ment, FCAM stated that a to­tal of 67 ap­pli­ca­tions for 6,111,000 units were re­ceived with none of the ap­pli­ca­tions found to be in­valid.

De­tails of the ap­pli­ca­tions and al­lot­ment of the of­fer, ac­cord­ing to FCAM, shows that 17 ap­pli­cants pur­chased the min­i­mum num­ber of units of 5,000.

The Chief Ex­ec­u­tive Of­fi­cer, FCAM, Mr. James Ilori, was quoted as say­ing, “We are de­lighted at the level of par­tic­i­pa­tion of the in­vest­ing pub­lic in the Legacy USD Bond fund of­fer.”

The fund pro­vides an ex­cel­lent op­por­tu­nity for in­vestors to reg­u­larly save in US Dol­lar and has now re-opened to new and ex­ist­ing in­vestors. “FCAM’S in­ter­na­tion­ally trained in­vest­ment team will man­age the Fund in line with the in­vest­ment ob­jec­tive of in­come gen­er­a­tion.”

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