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.

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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.