GLS turns strong demand into A$565.4 million for L1 strategy

GLS reaches maximum A$565.4 million raising

L1 Global Long Short Fund Limited (ASX:GLS) has secured the full potential of its capital raising, collecting approximately A$565.4 million through an entitlement offer, two shortfall offers and a new institutional placement. The result gives the listed investment company 321,248,063 additional shares to issue at A$1.76 each.

The completion marks a stronger outcome than the original retail leg alone could have established. The retail entitlement offer, which had opened with final proceeds dependent on shareholder participation, raised approximately A$177.2 million, including applications under the top-up facility.

Wholesale demand fills retail shortfall

Investors who took up their full retail entitlement could apply for additional shares, capped at five times their entitlement. The company said the retail offer received strong support from existing shareholders, while the remaining stock attracted binding bids from existing and new wholesale investors that exceeded the shares available.

That demand produced a further A$204.5 million through the retail shortfall offer. Allocations were scaled back, with the board saying it considered existing shareholder participation, equitable treatment and the aim of creating a broader shareholder base. The institutional component had already raised approximately A$100.9 million, following the institutional entitlement raise earlier this month.

Placement adds A$82.7 million

Strong demand in the retail shortfall process also prompted GLS to proceed with a placement that had been reserved as an option. The placement, conducted at the same A$1.76 offer price using residual capacity under ASX Listing Rule 7.1, will raise approximately A$82.7 million through the issue of about 47 million shares.

Across the retail entitlement offer, retail shortfall offer, institutional transactions and placement, GLS will issue approximately 321.2 million shares. The new securities will rank equally with existing shares and are expected to be allotted on 30 October, with normal settlement trading scheduled to begin on 2 November.

Capital directed to L1 investment strategy

GLS said the proceeds will be invested in accordance with the L1 Global Long Short Strategy. The announcement does not provide expected returns or a detailed allocation of the new capital, leaving the next measurable test to be how quickly the funds are deployed and how that portfolio performs alongside the enlarged share base.