New IPO – Spheria Emerging Companies Limited (ASX:SEC)

3 Nov 2017

Gamma Advisory

Gamma Wealth Group is offering clients an opportunity to invest in Spheria Emerging Companies Limited (ASX:SEC). Spheria will be a listed investment company (LIC), comprised of an investment team with close to 40 years’ experience.  Spheria aims to provide investors with risk-adjusted returns derived from a diversified portfolio of between 20 to 65 different companies.  They have a strong track record of investing in small and micro-cap companies.  Their investment selection process focuses on three core components:

 

  1. Companies with strong free cash flow
  2. Companies with low or no gearing on their balance sheet
  3. Companies trading at discounted valuations

Even though Spheria has outlined it is a small cap manager the average market capitalisation of the companies within their portfolio is $1 billion.

Details of Spheria Emerging Companies Limited are as follows:

 

  • A “Highly recommended” rating from Lonsec – one of only 3 Listed investment companies to ever receive this rating
  • Outperformed the Small Ordinaries Index by 6.3% in the last year and 7.3% since inception.
  • Annualised Return since inception of 11.6%
  • Issue Size – Minimum $100m and up to $250m with no oversubscriptions
  • Offer costs to be recouped by manager not paid by investors
  • Issue Price – $2.00
  • Expected ASX Code: SEC
  • Expected Listing Date: 5th of December 2017

This investment may be appropriate for those investors wanting exposure to a proven, quality, small cap manager.  Depending on your risk profile, this investment may be appropriate for a diversified investment portfolio.

We require expressions of interest by Friday 10th November, 2017.

Please click on the link to the prospectus.

https://www.taylorcollison.com.au/wp-content/uploads/2017/10/PIN19926_D1_Spheria-IPO_10.pdf

 

 

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