Dunedin to realise Alpha investment after AIM flotation

Investment trust Dunedin Enterprise announced on Friday that Alpha Financial Markets Consulting, in which it made a £8m investment in back in February 2016, had finalised terms for its conditional placing and proposed admission to the Alternative Investment Market of the London Stock Exchange.

Dunedin said that upon Alpha's admission to AIM it would realise 100% of its interest in the firm.

The Edinburgh-based group's initial investment in Alpha was valued at £9m as of 30 June, however, Dunedin said it was in line to receive as much as £16.7m in total sale proceeds, made up of £15.6m worth of capital in addition to £1.1m of income.

Dunedin also highlighted that it had a "2.1 times return" over the life of the investment as well as an internal rate of return (IRR) of 55%.

As a result of the realisation of Alpha, Dunedin said it would have cash balances of £33.2m with outstanding commitments to partnership funds of £38.3m, but estimated that just £22m of those commitments would be drawn over the remaining life of the limited partnership funds.

As of 0915 BST, shares had bumped up 6.28% to 419.00p.