Since January 2013 there have been 30 new listed investment companies (LICs) join the ASX. Each of these LICs issued investors with options as part of the initial public offer (IPO). In most cases, investors received one ‘free’ option for each share, although there were some offers where the ratio was less than one-for-one. Why do LICs include options as part of their IPO structure, why are they seemingly popular with investors and do they provide value to investors? In this month’s Independent Investment Research LMI Monthly Update we examine the issues investors need to consider in relation to LIC options.
06 Apr 2017
ASX Listed Investment Companies - Monthly Update - Analysis of Options
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ASX Listed Investment Companies - Monthly Update - Analysis of Options
- Published:
06 Apr 2017 -
Author:
Independent Investment Research Team -
Pages:
8
Since January 2013 there have been 30 new listed investment companies (LICs) join the ASX. Each of these LICs issued investors with options as part of the initial public offer (IPO). In most cases, investors received one ‘free’ option for each share, although there were some offers where the ratio was less than one-for-one. Why do LICs include options as part of their IPO structure, why are they seemingly popular with investors and do they provide value to investors? In this month’s Independent Investment Research LMI Monthly Update we examine the issues investors need to consider in relation to LIC options.