LONDON, UK: Ashoka WhiteOak Emerging Markets Trust plc announced its intention to launch an initial public offering (IPO) targeting gross proceeds of £100 million through the issue of 100 million ordinary shares at an issue price of 100 pence per Ordinary Share.

Ashoka WhiteOak Emerging Markets Trust plc is a new UK investment trust seeking to achieve long-term capital appreciation through investment primarily in quoted securities that provide exposure to global Emerging Markets.

The offer for subscription and intermediaries offer, and admission of the Ordinary Shares to the premium listing segment of the Official List of the FCA and to trading on London Stock Exchange’s main market for listed securities.

The company will enter into an Investment Management Agreement with Acorn Asset Management Ltd, under which the Investment Manager will be responsible for the discretionary management of the Company’s assets and will act as the Company’s AIFM for the purposes of the UK AIFM Regime.

The Investment Manager will appoint White Oak Capital Partners Pte. Ltd., an investment manager founded by Prashant Khemka with leading Emerging Markets investment experience, to act as the Company’s investment adviser.

The Investment Adviser has delivered an exceptional track record through its management of Ashoka India Equity Investment Trust plc (‘AIE’) and other strategies, with c. US$5.5 billion in assets under management.

Commenting on the intention to float, Prashant Khemka, Founder of the Investment Adviser, commented: “We are excited by the prospect of listing AWEM on the London Stock Exchange. This easily accessible vehicle will provide investors exposure to Emerging Markets and the opportunity to generate significant alpha through exposure to a portfolio of great companies at relatively attractive valuations.

Our well-resourced investment team has the credentials and expertise that place us in a unique position to achieve strong capital growth for shareholders. We look forward to building a new listed entity in London.”

Martin Shenfield, Non-Executive Chairman of Ashoka WhiteOak Emerging Markets Trust plc, said: “We are delighted to announce the proposed IPO of AWEM. The Company is seeking to raise £100 million to invest in a portfolio of equities, with the aim of providing long-term capital growth for our shareholders through exposure to Emerging Markets.

“AWEM has secured access to a world class Investment Adviser with significant experience in managing a leading equity investment trust. Together with the Investment Adviser, the Board believes that Emerging Markets present a compelling investment opportunity. With Emerging Markets valuations at multi-year lows relative to Developed Markets, they offer an attractive entry point, while simultaneously exhibiting generally lower inflation, lower debt levels and higher growth potential.

“The Company has a very attractive and innovative fee structure, with no annual management fee and an alpha fee paid entirely in the Company’s shares, driven by outperformance against its benchmark over the medium-term, aligning closely the interests of Investment Adviser with those of the shareholders. A robust Discount Control Mechanism, providing shareholders with the opportunity to redeem their shareholding on the basis of NAV on annual basis, should also contribute to protecting shareholder value.”