The GQG Partners Inc. (ASX: GQG) share price will be one to watch closely on Tuesday.
At 12:30pm today. the fund manager's shares will hit the ASX boards following one of the most highly anticipated initial public offerings (IPO) of the year.
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The GQG Partners IPO
GQG Partners' shares will begin trading today after the company raised approximately $1.2 billion at a price of $2.00 per share via its IPO. The latter was at the low end of its IPO price range of $2.00 to $2.20 per share.
This gives the fund manager a market capitalisation of $5.91 billion, which is just a touch short of rival Magellan Financial Group Ltd (ASX: MFG) and its ~$6.6 billion market capitalisation.
It also means that upon listing, the company's shares will be trading on a pro forma distributable earnings per share multiple of 16.5x and a forecast dividend yield of 5%.
What is GQG Partners?
GQG Partners is a global boutique asset management firm with a focus on active equity portfolios. It was established in 2016 by Executive Chairman and CIO Rajiv Jain and CEO Tim Carver. The former is the company's largest shareholder with a total of 2,030,616,054 shares. This equates to a 68.8% stake.
At the end of September, the company was managing a total of US$85.8 billion across its investment strategies. Among its clients are many of the largest pension funds, sovereign funds, wealth management firms, and other global financial institutions.
The company notes that since its founding in 2016 and through to the end of June, the company has achieved strong risk-adjusted returns in its categories for four primary investment strategies compared to peers and benchmarks over the same period.
This strong performance has allowed the company to build a client base with many prominent institutions and important wholesale platforms, leading to significant funds under management (FUM) growth.
Shareholders will no doubt be hoping this strong form continues as a listed company.
