Monday 6 January 2020 5:43 pm

Nippon Active Value Fund set for £200m float in London’s first IPO of 2020

Investment firm Nippon Active Value Fund (NAVF) is set to fire the starting gun on a £200m listing tomorrow in what could be London’s first initial public offering (IPO) of 2020.

NAVF is a closed-ended investment company that invests in securities with the majority of their operations in Japan. 

It is set to file its intention to float tomorrow, seeking admission of its shares to trading on the specialist fund segment of the London Stock Exchange.

Read more: Former SJ Berwin lawyer bags £23m fortune through float of consultancy MJ Hudson

NAVF is seeking to raise up to £200m at an issue price of 100p per share.

The news will be welcomed by the City after a grim year for listings in 2019.

According to stock exchange data, only 36 companies went public on the LSE in 2019 raising £4.4bn. 

In comparison 89 companies floated in 2018 raising £6bn in new cash.

Read more: Farmland-focused investment trust eyes $300m UK float

Shore Capital is acting as financial adviser and sole bookrunner on the listing.

NAVF is aiming to invest in a portfolio of quoted Japanese stocks with market capitalisations of up to $1bn (£760m) which its investment adviser deems to be undervalued.

It then plans to use activist strategies to help boost shareholder returns.

It has appointed the Rising Sun Management team as its investment adviser.

NAVF is aiming for dealings to commence in its shares in early February.

Last month, an investment trust focused on farmland set out plans to float in London in February, aiming to be the UK’s first listed trust offering investors direct access to the asset. 

The Global Sustainable Farmland Income Trust is seeking to raise $300m from investors to purchase “a diverse portfolio” of farmland around the world.

On election day, asset management advisory firm MJ Hudson raised £31.4m in a float that valued the business at just under £100m.