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Thorney Technologies Limited targets the tech sector

ETF Watch - Dec 14, 2016

Due to close on 20 December, Thorney Technologies Limited is aiming to raise up to $125m for a new technology focused LIC, through a backdoor ASX listing. The listing will include a $25m allocation to retail investors with the remainder of the offer open to instutitional investors.

Managed by Thorney Investment Group, manager of the $120m Thorney Opportunities Limited (TOP), Thorney Technologies Limited (TEK) will be a technology focused LIC. Thorney Technologies will take on around $6m worth of 'seed investments' from the manager which inlcudes household names Webjet and iSelect, as well as investments such as investment platform Hub24, biotech Anatara Lifesciences, and unlisted Agricultural tech company Aglive. This list should give a flavour of the types of investments that Thorney Technologies will target. The company does not plan to pay dividends at this point in time.

According to Thorney, the company's investment focus will be:

  • Technology Focus: The Company will be repositioned to have a broad and open investment mandate, focused on technology related businesses and other businesses with disruptive business models.
  • Experienced Manager: The Company will appoint Thorney Management Services Pty Ltd, as investment manager. Thorney Management is also the investment manager of the listed Thorney Opportunities Ltd, which is an ASX-listed company with net tangible assets in excess of $120 million.
  • An absolute return focus: The Company will pursue an absolute return focus over the medium to long term.
  • Exposure to listed and private businesses: The Company will have flexibility to invest in a wide range of investment opportunities covering listed and private companies, and a wide range of different types of securities, from shares, to convertible notes and other instruments.
  • Exposure to Australian and global opportunities: The Company will have the opportunity to invest in Australian and global business.
  • Investments across the business life-cycle: The Company will have the opportunity to invest across all stages of the business life cycle from start up to well established businesses. 

Management costs within the fund are 1.5% per annum. The fund does not benchmark itself against any indexes, and has listed performance fees of 20% of any growth of assets.

According to the ETF Watch Fund Database, the only other LIC available on the ASX with a tech focus is Bailador Technology Investments Limited (BTI). With two years history on the ASX and a market cap of $120m. With a limited amount of options for technology focused investments available to retail investors, Thorney Technologies may fill a niche in some investors' portfolios.

For those wishing to invest in the Thorney Technologies Company, you can do so from this website. Don't get scared off by the "ARFuels" logo on the website. This is a backdoor listing from a failed bio-diesel company.

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IPO Facts

  • Minimum raise of $20m
  • Maximum of $50m (with $125m oversubscription facility)
  • $0.22 issue price
  • Offer open date 23 November 2016
  • Broker firm offer closes 20 December 2016
  • Expected trading on the ASX 23 December 2016

This post was prepared with publicly available information available from Thorney Technologies. ETF Watch did not receive any payment from Thorney Technologies for this post.

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