BlueBay Asset Management, a London-based fixed-income hedge fund manager, today raised £189 million (US$357 million) in an IPO on the London Stock Exchange, according to a news release from the firm. The firm issued 63 million shares at an offering price of £3.00 per share. Additionally, BlueBay offered an over allotment of 7 million shares to "a broad range of institutional investors following a successful roadshow across the U.K., continental Europe and the U.S.," according to the release. More information about the over allotment was not available, said Jo Ongert, BlueBay's head of marketing and client service in an interview.
Hugh Willis, BlueBay CEO, and Mark Poole, CIO, now own about 12% each of the ordinary shares issued, and other employees own about 33%, according to the release. BlueBay managed about £4.2 billion in three credit hedge fund strategies as of Sept. 30.
At the close of the first day of trading, BlueBay shares were £3.15, according to the LSE's website.
Investment bankers at Putnam Lovell NBF Securities calculated that BlueBay Asset Management's initial offering was the sixth largest raised by an asset management company, and it is the ninth firm to take the IPO route this year, Putnam Lovell NBF spokesman Richard Chimberg wrote in an e-mail. Putnam Lovell was not involved in the IPO.