L1 Gold Fund in subdued Australian debut after $678 million IPO

About this update from L1 Gold Fund Limited

By Yantoultra Ngui and Shivangi LahiriShares in L1 Gold Fund Ltd ASX:LGF edged higher in their market debut on Friday after the Australian investment company raised A$950 million ($678 million) in an initial public offering.The shares were up 1% at A$2.03 in morning trade.Gold has pulled back sharply from last week's record high near $4,900 an ounce, as the Middle East conflict drives oil prices higher and fuels inflation concerns.The fund will invest mainly in domestic and international gold sector securities, but will also make some opportunistic investments in other precious metal securities. It targets positive absolute returns over the medium to long term.Its prospectus said the IPO proceeds would be used to acquire part or all of the portfolio of the Wholesale L1 Capital Gold Fund with the remaining cash deployed into additional investments.Founders Mark Landau and Raphael Lamm bought a combined A$140 million worth of shares in the IPO, while L1 Group bought A$112 million, a Monday filing showed.($1 = 1.4021 Australian dollars)

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