£11.2M sees Artemis AiM VCT 2 plc make its First Share Allotment and on Course to Reach its Target
With AiM looking set to list 1,000th company this side of Christmas, managers set out to lure profits.
Having received valid subscription applications for £11.2m, of which £10.7m applies to the 2004/2005 tax year, Artemis AiM VCT 2 (“the Company”) made its first allotment of shares on 10th December 2004. The Company, which was launched in October 2004, has exceeded its first milestone on time and the amount received to date represents in excess of a quarter of the total the Company is seeking to raise.
Share and Tax certificates, permitting investors to claim tax relief, will be issued on 24th December.
Introduced by the Government earlier this year, changes offering investors income tax relief of up to 40% on amounts subscribed in the 2004/05 and 2005/06 tax years have brought considerable interest in the VCT market. However, whilst a number of houses have rushed to this market, many for the very first time, it is experience that is attracting intermediary interest. This is borne out by the fact that the amount raised by the Company represents a considerable proportion of the estimated £80m* raised to date by the latest tranche of VCT offers.
With the Company’s investment focus being to invest mainly in companies traded on the Alternative Investment Market (“AiM”), it is encouraging to see the junior AiM market enjoying record fundraising levels in 2004 and on track to list its 1,000th company** this side of Christmas, and the managers will look forward to hunting profits across a rapidly developing and fertile landscape.
The Artemis VCT team
Lindsay Whitelaw and John Dodd share an impressive track record: they run the Artemis New Enterprises and Artemis UK Smaller Companies funds respectively, and jointly Artemis AiM VCT; both enjoy Citywire AAA-ratings.
It is this experience, combined with Artemis’ strength in small cap investment - £1bn invested in UK Small Cap Companies, £300m of which is in AiM-listed stocks - along with their extensive links with companies and brokers active in the AiM market, which is attracting much intermediary interest in the Company.
It is these links that are so essential in securing top-quality deal flow. Whitelaw in particular has a strong venture capital background, having specialised in providing finance to companies in key positions at both 3i plc and Ivory and Sime plc.
Commenting on the Trust’s success in reaching its first milestone, Mark Tyndall, Chief Executive, Artemis Investment Management said, “To have launched in October and made the first allotment of shares on schedule is testament to the confidence intermediaries have in Artemis’ ability to manage a VCT.”
“Investors aren’t blinded by tax breaks alone and are looking for VCT managers with a proven pedigree. In Lindsay and John, they are buying long-standing expertise of investment in AiM-listed and unquoted companies and experience of running a VCT – factors which have been and will continue to be telling in a competitive marketplace.”
For the full prospectus and further information contact 0800 092 2090 or visit the Artemis AiM VCT 2 plc site (a new window will open). For dedicated IFA Literature visit the IFA office.
* Source: Matrix-Data Ltd
** Source: KPMG Corporate Finance
