Strong Demand Forces L1 Global Long Short Fund to Expand Capital Raise
L1 Global Long Short Fund Limited has successfully completed its shortfall offer bookbuild, prompting a $62 million institutional placement at $1.63 per share, adding to a total raise of up to $415 million. Trading is set to resume immediately following the announcement.
- Strong demand in shortfall offer bookbuild
- Additional $62 million institutional placement at $1.63 per share
- Total capital raise up to $415 million including entitlement offer
- Placement shares to rank equally with existing shares
- Trading halt lifted with shares resuming on ASX
Capital Raising Momentum
L1 Global Long Short Fund Limited (ASX – GLS), formerly Platinum Capital Limited, has announced the successful completion of its shortfall offer bookbuild, which attracted robust interest from both existing shareholders and new wholesale investors. This strong demand has led the company to undertake an additional institutional placement of approximately $62 million at the offer price of A$1.63 per share.
Details of the Placement
The placement follows the company's pro-rata non-renounceable entitlement offer, which allows shareholders to subscribe for one new share for every share held, aiming to raise up to $415 million in total. The placement will be conducted under the company's existing placement capacity, meaning no shareholder approval is required. Shares issued through this placement will rank equally with existing fully paid ordinary shares, ensuring parity among investors.
Strategic Investor Support
L1 Group Limited, a cornerstone investor, has agreed to split its commitment to accommodate the placement, with approximately $62 million allocated to the placement and the remainder forming part of the shortfall offer. This demonstrates strong institutional backing and confidence in the fund’s strategy.
Next Steps and Market Impact
The entitlement offer is scheduled to open on 9 December 2025 and close on 18 December 2025, with settlement of the placement and new shares expected on 24 December 2025. The proceeds will be invested according to L1 Capital's Global Long Short Strategy, which aims to balance risk and return through diversified investment positions.
Following the announcement, the trading halt on GLS shares has been lifted, allowing shares to resume trading on the ASX immediately. Investors will be watching closely to see how the market responds to the capital raising and the potential impact on share liquidity and valuation.
Bottom Line?
With strong investor demand fueling an expanded capital raise, L1 Global Long Short Fund is poised for a significant growth phase; next, all eyes turn to market reaction post-settlement.
Questions in the middle?
- How will the additional capital impact L1 Global Long Short Fund’s investment strategy and portfolio composition?
- What are the potential dilution effects for existing shareholders following the placement and entitlement offer?
- Will the strong institutional support translate into sustained share price momentum after trading resumes?
