Sequoia Economic Infrastructure Fund, managed by Sequoia, has announced it has raised £126 million (US$157 million).

It was targeting a placing of in excess of £40 million (US$50 million) of new ordinary shares under its placing programme under which the company has authority to issue up to a maximum of 120 million shares.

The board has announced that the placing has been significantly oversubscribed and investor demand for the placing has significantly exceeded the maximum amount of 120 million new ordinary shares which can be issued pursuant to the company's placing programme.

The board after consideration and consultation with the investment adviser and the bookrunner, has determined to issue the maximum number of new ordinary shares available under the placing programme. A total of 120 million new ordinary shares will be issued at a price of £1.05 (US$1.31) per new ordinary share pursuant to the placing. Accordingly, the gross proceeds of the placing will be approximately £126 million (US$158 million).

The board has taken into account the strength of the investment adviser's near term investment pipeline and the company's stated dividend target. The company's near term investment pipeline consists of approximately £130 million (US$163 million) of opportunities with over £300 million (US$375 million) of additional opportunities available to the Investment Adviser.  

A scaling back exercise has been undertaken with respect to applications received pursuant to the placing.

Application has been made for the new shares to be admitted to the official list and to trading on the London Stock Exchange's premium segment of the main market. A total of 120,000,000 new shares will be issued (subject to admission). It is expected that admission will become effective and dealings in the new shares will commence on 9 December 2016. Once issued, the new shares will rank pari passu with the existing ordinary shares.

Following admission, the company will have 595,412,613 Ordinary Shares in issue. Therefore, the total number of voting rights of the company will be 595,412,613 and this figure may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest in, the company.

Stifel Nicolaus Europe Limited acted as sponsor and sole bookrunner.