Income Asset Management Group Completes $18 Million Equity Raise

Highlights:

• $18 Million Equity Raise Completed: Income Asset Management Group Limited (ASX: IAM) has finalized its $18 million capital raise, bolstering its financial position and enabling the repayment of a $10 million note, saving $1.2 million in annual interest costs.
• Operational Transition for Savings: The transition to Perpetual Corporate Trust, set to begin in December 2024, is expected to save over $4 million annually and enhance client experiences and investment administration.
• Stakeholder Support and Advisory Addition: Strong backing from Regal Funds Management and Jim Simpson of Jamplat Pty Ltd, with Simpson joining IAM in an advisory role, highlights confidence in the company’s strategic direction.

Strengthened Balance Sheet and Cost Reductions

Income Asset Management Group Limited (ASX: IAM) has successfully completed its $18 million equity raising, announced on October 14, 2024. The company received full proceeds following shareholder approval of the second tranche of the placement during its Annual General Meeting on November 25, 2024.

The raised capital has enabled IAM to repay its $10 million IAM note, which, at the time of writing, is projected to save $1.2 million in interest costs annually. This significant reduction in financial liabilities has fortified the company’s balance sheet, positioning it for sustained growth.

Transition to Perpetual Corporate Trust

IAM plans to transition its asset administration to Perpetual Corporate Trust starting December 2024, with completion expected in the first quarter of 2025. This move is anticipated to achieve annual cost savings exceeding $4 million, improve client experiences, and streamline investment administration processes.

Leadership’s Commitment and Acknowledgements

CEO Jon Lechte expressed gratitude to stakeholders, including shareholders, brokers Blue Ocean Equities Pty Ltd and Morgans Corporate Limited, and sub-underwriters Regal Funds Management Pty Ltd and Jim Simpson of Jamplat Pty Ltd. Simpson, a founding partner of Platinum Investment Management and a PTM Board Director, has shown enthusiasm for IAM’s strategic direction and will now serve in an advisory role.

Looking Ahead

At the time of writing, the successful capital raise underscores IAM's commitment to enhancing its operational efficiency and delivering value to its investors. With over $2 billion in Funds under Administration, IAM continues to focus on providing innovative platforms for income investment research, execution, and management.

This announcement reflects IAM's proactive measures to strengthen its financial foundation while optimizing operations for long-term success.

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