Despite the poor performance of equity markets of late, investors have not shied away from public sh...
Despite the poor performance of equity markets of late, investors have not shied away from public share issues. Instead investors are increasingly looking to tie-up their money in companies like the Ethical Property Company which have benefited from staying off-market.
Yesterday the EPC reached full subscription of £4.2m of its second public share issue, despite the FTSE 100 trading at an all-time low.
Co-founder of EPC, Jamie Hartzell, attributes the ethical company's success in raising funds to avoiding the bloodbath on the listed markets combined with the positive performance of the property market.
Instead of opting for a public listing, EPC chose to issue shares through the matched bargain market which brings together buyers and sellers and cuts out the middle-person market maker.
Hartzell says the EPC made a conscious ethical decision not to be listed on the LSE and open itself up to short-term market speculation. Instead it is trying to offer a share price that more accurately reflects the company's value in the long-term.
The co-founder says that by opting to issue shares to the public through a matched bargain system, the EPC has been able to achieve liquidity, yet avoid the trappings of listed shares which often are subject to short-term market volatility.
The share price is currently offered by Triodos Bank – which is acting as their sponsor – at £1.05, an increase of 5p since its first share issue launch in May 1999 which raised £1.2m.
The EPC plans to combine the funds raised with a bank borrowing which will total £10m. The company is looking to continue its policy of setting up resource centres for charities and social enterprises in the UK.
Continuing its 'ethical' ethos, the EPC promises to offer tenants reasonable rent, sympathetic management and the opportunity to share ideas and resources with like-minded organisations.
The EPC currently owns and manages 8 centres across the UK with 65 social change organisations as tenants.
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