L1 Global Long Short Fund has launched a non-underwritten one-for-two entitlement offer at A$1.76 a share, targeting up to A$482.7 million for new investments. The raising follows a 19.4% portfolio return since L1 Capital became manager and comes with the familiar risk that shareholders who do not participate could be diluted.
- Non-underwritten one-for-two entitlement offer targeting up to A$482.7 million
- A$1.76 offer price approximately equal to pre-tax NTA
- Offer price discounts GLS’s five-day VWAP by 10.5%
- Portfolio returned 19.4% versus 12.7% for MSCI World
- Mark Landau and Raphael Lamm intend to take up fully
A$482.7 million raise targets global stock opportunities
L1 Global Long Short Fund Limited (ASX:GLS) is asking shareholders for up to A$482.7 million to expand its global long-short portfolio, launching a one-for-two non-renounceable entitlement offer at A$1.76 per new share. The offer is not underwritten, so GLS has no certainty of raising the full amount.
The capital will be deployed under L1 Capital’s Global Long Short Strategy, which the manager says is finding opportunities amid geopolitical tension, higher bond yields and volatility linked to artificial intelligence. The company also retains the option to conduct an institutional placement at the same price, either alongside or after the entitlement offer, subject to demand and available placement capacity.
Offer price sits near NTA but below recent trading levels
At A$1.76, the offer price is approximately equal to GLS’s pre-tax net tangible asset value per share as at 2 October. It represents a 10.5% discount to the five-day VWAP of A$1.97 and a 5.9% discount to the A$1.87 last traded price on 5 October. That pricing contrasts with the premium to NTA at which GLS has traded since L1 Capital took over investment management.
The structure is less forgiving for shareholders who sit out. Entitlements cannot be traded or transferred, meaning an eligible holder who does not participate receives no value for the entitlement and may see their ownership percentage fall as new shares are issued. Retail investors who take up their full entitlement may apply for additional shares through a top-up facility, although allocations can be scaled back at GLS’s discretion.
Performance supports the case for larger capital base
GLS reported a net portfolio return of 19.4% from 1 December 2025 to 30 September 2026, compared with 12.7% for the MSCI World Index over the stated comparison period. The fund’s transformation under L1 followed a capital raising completed in December 2025, which raised approximately A$477 million through entitlement, shortfall and placement transactions.
The board reiterated its intention to pay at least 8.0 cents per share in fully franked dividends during FY27, comprising quarterly payments of 2.0 cents. The guidance remains conditional on board approval, the company’s financial position and performance, and the availability of profits and franking credits. The new shares will rank equally with existing shares and participate in future distributions from issue.
Founders signal full participation as execution risk remains
L1 founders and Co-Chief Investment Officers Mark Landau and Raphael Lamm have separately indicated that they intend to take up their full entitlements through personal investment vehicles. That provides a stated signal of alignment, but it does not remove the central execution question: how much of the maximum raise will be subscribed by existing holders and investors in the shortfall process.
The institutional bookbuild opened on 6 October, with results due on 8 October. Eligible retail shareholders in Australia and New Zealand are due to receive access from 13 October, with the retail offer scheduled to close on 23 October. Until the final amount is known, the scale of GLS’s enlarged investment base, its post-raise NTA and any dilution for non-participating holders remain unresolved.
Bottom Line?
The headline opportunity is a larger pool of capital at approximately NTA, but the investment case now depends on subscription levels, deployment discipline and whether recent performance can be extended.
Questions in the middle?
- How much of the A$482.7 million maximum will GLS actually raise once institutional and retail participation are known?
- Will the additional capital be deployed without weakening returns or increasing the strategy’s exposure to short-selling and leverage risks?
- Can the board maintain the 8.0 cents per share FY27 dividend target after the enlarged share count and final portfolio performance are factored in?