- An IPO raise is open for H&G High Conviction, which is scheduled to debut on the ASX in mid-October under the proposed ASX code: HCF
- H&G (Hancock & Gore) High Conviction provides risk-adjusted returns through a portfolio of microcap ASX-listed companies
- It is looking to raise up to $20 million, but the price of the IPO shares won’t be revealed until the end of September
- Lead Manager is Morgans Financial
An IPO raise is open for H&G High Conviction, who’s on track to start trading as an ASX-listed investment company in mid-October.
The company is focussed on providing risk-adjusted returns through a portfolio of microcap ASX-listed companies, which generally mean companies with market caps between $50 and $100 million.
H&G High Conviction began as a unit trust in 2007.
The company aims to raise up to $20 million, but the issue price won’t be revealed until the offer closes at the end of the month. It will be decided by the total value of the company’s assets, less its liabilities at 5:00 pm on September 30.
Portfolio Manager Joseph Constable told Deal Room the fund had developed a niche through its focus on microcap companies.
“By having a concentrated portfolio of these companies, where we target say, 15-25 of these stocks that we know really well, we feel like we can provide really good long term performance and it’s uncorrelated to the market,” he said.
“You can know more about the microcap than you can about a larger cap. It’s pretty difficult to be across the subsidiaries of BHP – let’s say – and know exactly what’s happening, but for a microcap, which is say a $15 million company, you can know the people running it.
“There is a lot of risk, but if you do your homework and you really do the thorough, thorough research, which we do, I think there is less risk.”
The top companies in the H&G High Conviction portfolio are: PO Valley Energy (PVE), 14 per cent; Kiland (KIL), 12 per cent; Centrepoint Alliance (CAF) 10 per cent; Proptech Group (PTG) five per cent; and, Hillgrove Resources (HGO) four per cent.
The proposed ASX code is HCF.