Fidelity is looking to raise £162.1m in a new share issuance on its China Special Situations trust, run by Anthony Bolton.
Less than a year after the investment trust was launched, Fidelity is issuing the 166,250,000 C shares to satisfy demand for the product, subject to shareholder approval.
In a stock exchange announcement released this afternoon, the board says: "The company was launched on 19 April, 2010 with the board having the authority to issue shares equal to 10% of the current share capital without pre-emption.
"Since initial listing, the ordinary shares have traded on average at a premium of over 6% to the NAV per ordinary share. In order to meet demand notably from regular investors, the company has issued a further 38,750,000 ordinary shares since the initial listing.
"The board believes that, despite the risks, China represents a compelling investment opportunity. The C Share issue will provide all Shareholders with the opportunity to increase their investment exposure to China."
Fidelity is also seeking to increase to 10% the amount of ordinary shares that can be issued without further shareholder consent.
From 19 April to 30 December, 2010, the trust's NAV per share increased from 99.01p to 112.55p, an increase of 13.7%. This compares with a rise in the benchmark, the MSCI China index, of 3.75%, according to the group.
Shareholders will be asked to vote at a general meeting is expected to be held on 11 February.
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