LONDON, UK: Literacy Capital plc announced its intention to seek admission of its ordinary shares of £0.001 to trading on the Specialist Fund Segment of the Main Market of the London Stock Exchange.

Literacy Capital’s objectives are to achieve long term capital growth through making investments in accordance with the Investment Policy; and to provide a consistent donation to registered charities selected by the Investment Manager with the approval of the Board.

The Company’s investment policy is to invest in a diversified portfolio consisting primarily of equity and equity-related securities issued by unquoted companies. The full terms of the investment policy are set out under the heading “Investment Policy” in the Prospectus.

Literacy Capital Asset Management LLP (Investment Manager) is the Company’s investment manager. The Investment Manager, which is sector agnostic in its approach, looks to identify compelling opportunities for investment in under-served parts of the market. It has a core focus on companies which generate EBITDA between £1 million and £5 million, and will typically invest in family-owned and founder-led businesses.

Paul Pindar, Chairman, said: “Literacy Capital is delighted to bring this compelling opportunity to market, providing investors access to a differentiated investment approach to private equity. We believe we have a unique offering, an alternative way of working with founders and owners of small businesses that offers strong, long-term investment support with a social purpose at its centre.”

Richard Pindar, CEO, said: We invest in founder-led and owned businesses that we can work closely with as engaged and active shareholders to offer guidance and encourage innovation in this under-served part of the market. We can help to attract high calibre individuals to create complete teams, which can assist these companies thrive long term.”

Singer Capital Markets Securities Limited (trading as N+1 Singer), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority (“N+1 Singer”), is acting exclusively as financial adviser and sole bookrunner for the Company.

The Company expects to publish a prospectus (the “Prospectus”) later today (23 June 2021) and Admission is expected to occur on 25 June 2021. N+1 Singer is conducting a limited placing on behalf of a small number shareholders who will sell some or all of their shares conditional upon Admission. The sale and purchase price per Ordinary Share is 160 pence, excluding commission.

Literacy Capital was created as a permanent capital vehicle to allow longer term decision making and with the intention to generate substantial investment returns.

This has been borne out. As at the end of 2018, the Company had raised approximately £54 million in capital. As at 31 March 2021 (being the date of the last published Net Asset Value – which has not been audited – as at the latest practicable date prior to the publication of this Prospectus), the Company’s Net Asset Value is approximately £96.4 million (which equates to a Net Asset Value per Ordinary Share of 178.5p or 160p following conversion of the A Growth Shares which will occur immediately prior to Admission), which, inter alia, excludes certain deferred tax liabilities that are not expected to become payable should the Company qualify for investment trust status with effect from the financial year commencing 1 January 2022.

The Company’s portfolio has shown robust performance during 2020, despite COVID-19, with NAV up 29 per cent in 2020. The performance in 2020 was due to both a maturing of the portfolio and the businesses in it, along with reduced cash drag, as the Company became more fully invested.