Florida-based manager GQG debuts on the ASX
Morningstar analysts have left the boutique asset manager's parent rating unchanged.
Mentioned: GQG Partners Emerging Markets Equity (43156), GQG Partners Global Equity Fund (43212), GQG Partners Global Equity AUD Hedged (43807), GQG Partners Inc (GQG)
GQG Partners, parent of several equity strategies with mandates covering international, global, emerging markets, and US stocks, has filed to trade publicly on the Australian stock exchange.
According to the offering prospectus, issued October 7, 2021, shares are slated to begin normal trading on October 27. GQG representatives, citing the quiet period, did not say whether shares will later be listed in the United States.
GQG Partners (ASX: GQG) fell in its first day of trading
Source: Morningstar
GQG Partners’ Parent rating remains unchanged at Above Average, and the Morningstar Analyst Ratings of GQG’s various strategies also remain intact. Although a portion of its shares will be publicly traded, control of GQG Partners—which had US$85.8 billion under management as of September 30, 2021—will remain in the hands of co-founder Rajiv Jain, the firm’s executive chairman and CIO. The other co-founder, CEO Tim Carver, will also have a substantial stake. The duo launched the firm in 2016.
According to the prospectus, after the offering is complete Jain will hold 68.8% of the shares, down from 86% currently, while Carver, the second-biggest shareholder, will own 5.6%, down from 7%. At that time, all employees of GQG, which currently number about 125, will own equity in the firm. Currently there are 17 equity partners.
Morningstar coverage | GQG partners
Source: Morningstar
GQG representatives and the prospectus cite a number of reasons for taking this action. These include spreading ownership throughout the firm’s current employees; having the ability to use the equity to attract and retain talent; to improve the firm’s infrastructure, including auditing and risk functions; to attract new board members; and to have equity available for potential acquisitions or other “strategic initiatives.” They also concede that one aim is to raise awareness of GQG in Australia.
If the offering raises the amount cited in the indicative range, it will total $1.187 billion to $1.306 billion (US$889 million to US$978 million).