News & Insights

Media Release: Plato Income Maximiser IPO exceeds minimum milestone after first week


Sydney, 23 March 2017: Plato Investment Management’s first listed investment company (LIC) – Plato Income Maximiser Limited (ASX: PL8) – exceeded its minimum target of $75 million after the first week of the Offer period following strong interest from self-directed investors and advisers.

PL8 offers Australian investors the opportunity to invest in an actively managed, diversified portfolio of Australian shares with an income focus.

Plato Income Maximiser Limited’s investment strategy is modelled on the successful Plato Australian Shares Income Fund (the Fund) strategy, which is designed specifically with SMSF and pension-phase investors in mind.

The Fund has delivered 9.0% p.a. income and a 14.0% p.a. total return since inception to 31 December 2016*.

Managing Director of Plato Investment Management Ltd (Plato) Dr Don Hamson said, “Investor interest has been very strong, reflecting the demand from SMSFs and pension-phase investors for a listed, high-income vehicle.

“As the first LIC targeting to pay monthly, fully franked dividends, PL8 provides an in-demand solution for investors wanting to avoid eating into their capital as they manage longevity risk.”

The IPO is seeking to raise up to $220 million, with the ability to accept an additional $110 million in over subscriptions. The IPO has an issue price of $1.10 per share. Additionally, investors will receive 1 option for every 1 share issued under the offer.

The LIC was launched in response to investor demand for an ASX-listed product that targets high sustainable income paid monthly.

PL8’s offer period is open until 21 April 2017. Trading on the ASX is expected to commence on 5 May 2017.

Chris Donohue from Seed Partnerships, the corporate advisers for the LIC commented, “We know there is a strong investor appetite for specialist, high-yield equities strategies to supplement traditional sources of income. That is being borne out by the success of PL8 after its first week of roadshow and we expect that enthusiasm to continue over the offer period.”

Plato is supported by leading multi-affiliate investment management firm, Pinnacle Investment Management Limited (Pinnacle) which owns a minority stake in the business. Pinnacle currently has a stable of seven specialist investment managers that collectively manage over $23 billion.

*Income and total return are after fees and costs, grossed up for franking credits. Performance data is to 31 December 2016 and inception date is 9 September 2011. Past performance is not a reliable indicator of future performance.