Archived article
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Hipgnosis is cashed up and ready to buy more songs

AJ Bell is an easy to use, award-winning platform Open an account
We've accounts to suit every investing need, and free guides and special offers to help you get the most from them.
You can get a few handy suggestions, or even get our experts to do the hard work for you – by picking one of our simple investment ideas.
All the resources you need to choose your shares, from market data to the latest investment news and analysis.
Funds offer an easier way to build your portfolio – we’ve got everything you need to choose the right one.
Starting to save for a pension, approaching retirement, or after an explainer on pension jargon? We can help.
Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Hipgnosis Songs Fund (SONG) 121.5p
Gain to date: 5.2%
Original entry point: Buy at 115.5p, 18 June 2020
Better than expected demand for investment trust Hipgnosis Songs Fund’s (SONG) equity placing has seen it raise £236.4 million by issuing new stock at 100p per share. Of that amount, £3 million came from retail investors.
Hipgnosis originally set out to raise £200 million to buy more song catalogues. It makes money from royalty payments and has a £1 billion pipeline of potential acquisitions.
The new shares will trade separately to the existing ones until one month after a minimum 80% of the new money is deployed or the close of business on 15 July 2021, whichever is earliest.
Investors in these ‘C’ class shares will qualify for dividends from any income generated from investments using the new cash.
The C shares will eventually be converted into ordinary shares and so anyone owning the C shares will then benefit from having exposure to a much broader catalogue of royalty-generating songs.
Hipgnosis wants shareholders to vote at the September AGM on changing the conversion date so that it is linked to the semi-annual net asset value calculation. Under the proposed changes, the latest calculation date would be 30 September 2021 and the latest conversion date would be 28 February 2022.
SHARES SAYS: Hipgnosis now has a large chunk of cash to buy songs and increase their value through film, advert and TV placements. Buy the ordinary shares, not the C ones.
These articles are provided by Shares magazine which is published by AJ Bell Media, a part of AJ Bell. Shares is not written by AJ Bell.
Shares is provided for your general information and use and is not a personal recommendation to invest. It is not intended to be relied upon by you in making or not making any investment decisions. The investments referred to in these articles will not be suitable for all investors. If in doubt please seek appropriate independent financial advice.
Investors acting on the information in these articles do so at their own risk and AJ Bell Media and its staff do not accept liability for losses suffered by investors as a result of their investment decisions.
The value of your investments can go down as well as up and you may get back less than you originally invested. We don't offer advice, so it's important you understand the risks, if you're unsure please consult a suitably qualified financial adviser. Tax treatment depends on your individual circumstances and rules may change. Past performance is not a guide to future performance and some investments need to be held for the long term.
Our website uses cookies to give you a better browsing experience.
You can choose to accept all cookies, or control which we use by clicking 'Manage cookies'. To learn more, read our cookie policy.