CMS advises on innovative listed fund IPO

CMS in London is advising new client, River and Mercantile UK Micro Cap Investment Company Limited on its initial public offering and proposed admission to the premium segment of the official list, announced on 4 November. The IPO is due to close in late November.

The fund, which will be based in Guernsey, is seeking to raise £50-100 million to invest in UK micro cap stocks. The fund will use an innovative redeemable share structure to ensure its assets do not grow beyond £100 million. If they do the fund will have the discretion to return a portion of shareholders’ capital.

The transaction was led by London partner Cathy Pitt and the team included associate Paula Ade, lawyer Qasam Mahmood and trainee Martin Vlk from the Corporate group and partners Richard Croker and Sam Dames and senior associate Anna Burchner in Tax.

Commenting on the transaction, Cathy Pitt says: “We are pleased to advise our new client in bringing this innovative fund to the market.”