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New UK investment trust Ashoka WhiteOak plc revealed its intention to float on the premium segment of the London Stock Exchange (LSE)’s Main Market. Admission to trading and first day of dealings are set to commence on 3 May 2023, and the company intends to raise gross proceeds of £100m at 100p per share through an initial public offering (IPO), providing a boost to London’s equity capital market, which has experienced a slow beginning to 2023.

The IPO is a significant step for Ashoka WhiteOak, a recently established investment trust, which is primarily focused on investing in publicly traded securities that offer access to global emerging markets. Ashoka WhiteOak plc is set to become the first investment trust to list in London for over a year. A quiet IPO market is being attributed to inflation, a rise in commodity and energy prices and geopolitical events such as Russia’s invasion of Ukraine; furthermore, the pandemic threat is still hindering a complete worldwide economic rebound.

The closed-ended investment company plans to enter into an investment management agreement with Acorn Asset Management, which will be responsible for managing the company’s assets and acting as the company’s Alternative Investment Fund Manager (AIFM) under the UK AIFM regime. The investment manager intends to appoint White Oak Capital Partners as the investment adviser for the company. White Oak has a strong track record, currently managing around £4.5bn (US $5.5bn) in assets. The adviser views emerging markets as having great potential as investments due to their advantageous lower valuations, inflation, and debt levels compared to developed markets, as well as their higher growth rates. Compared to developed markets, emerging markets are typically less researched, according to the investment trust. Despite accounting for over 40% of global GDP, they only make up 11% of global equity indices, creating an opportunity for active managers to potentially generate excess returns. Prashant Khemka, founder of the company’s investment adviser commented on the IPO:

‘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.'

Market Tracker data indicates that, as of the 12^th of April 2023, only 9 companies have announced their intention to join the LSE in 2023, which marks a 61% decline from 2022, with 23 companies announcing their intention to join during the same period.

Market Tracker will continue to monitor the IPO market and track any new developments in the area.