Emerging markets equities trust targets £100m IPO

Ashoka White Oak Emerging Markets Trust will list on the London Stock Exchange

Outside picture of the London Stock Exchange
Copyright: World Service/Flickr


The Ashoka White Oak Emerging Markets Trust (AWEM) has announced its intention to launch a £100m initial public offering (IPO).

The trust will list its initial 100 million shares on the London Stock Exchange.

It has also appointed Acorn Asset Management as investment manager, while White Oak Capital Partners has been named investment adviser.

White Oak currently advises the £205m Ashoka India Equity Investment Trust.

Prashant Khemka, founder of White Oak Capital, said: “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.”

The trust will publish its prospectus and initial issue on 18 April. The board of the trust, which will be made up of three non-executive directors, will be chaired by managing director of strategy at TS Lombard, Martin Shenfield.

Shenfield said: “With emerging markets valuations at multi-year lows relative to developed markets, they offer an attractive entry point, while simultaneously exhibiting generally lower inflation, lower debt levels and higher growth potential.

“The company has a very attractive and innovative fee structure, with no annual management fee and an alpha fee paid entirely in the company’s shares, driven by outperformance against its benchmark over the medium term, aligning closely the interests of investment adviser with those of the shareholders.

“A robust discount control mechanism, providing shareholders with the opportunity to redeem their shareholding on the basis of net asset value on annual basis, should also contribute to protecting shareholder value.”

See also: From deluge to drought to delay: a look ahead to the 2023 IPO market