On 28 August 2014, We wrote an article introducing Icapital.Biz, the only closed end fund listed on Bursa. We believe it is undervalued about 20%. We also wrote why it is time to buy, reasons among other was the undervaluation, good management and a dual listing plan to close the Discount Gap.

Are these still valid?


as of 13 nov 2014, its NAV is RM3.03 while its Market price as of 19/11/2014 was RM 2.4. A 20.7% discount still exists.
Secondly, is the Dual listing still on?

The Fund Manager has been running all over Malaysia, updating the status of the dual listing. (Well actually, it was also a roadshow to encourage share owners to attend the upcoming EGM to re-elect a particular director..that is story for another article.) below are new information provided:

What new information do we have?
1. The Dual listed fund is actually a separate fund from Icapital.Biz

2. It will be quoted in USD

3. The 2nd listed country (beside Bursa) is a country without capital gains tax. The fund manager (Capital Dynamics Asset Management SB) has offices in KL, Singapore, Hong Kong, Australia and Shanghai. This rules out Australia as country of listing as it has capital gains tax in placed.

4. The IPO will try to raise USD100 million as fund size.

5. It is in the Due diligence stage and should be ready by 1H 2015. 

6. It comes with a free warrant with every 5 shares subscribed and the strike price is tied to its NAV.

7. Any shares bought or subscribed in Malaysia (which will be in USD) can be transferred to the 2nd listing country. (the fund manager claims this makes it a legal avenue for one to send ones fund oversea)

8. It will be a global fund with a mandate to invest in 42 countries.


The Fund manager, stresses that the fundamental reason for this is to benefit the share owners, presumably to handle the NAV gap in Icapital.Biz. however he is tight lip on how does a 2nd fund solves the issue. He claim any information of this sort might seen as market manipulation with insider information.

If this is the case, then it is more important for us to study how it might benefit Icapital.Biz share owners. If the NAV to price gap is closed or narrowed we are sitting on a possible of  26% gain (Assuming we buy at RM2.4 and it rises to its NAV at RM3.03)



We speculate, Icapital.Biz with its cash of about RM250 million or USD74.5 million will subscribed to the new fund and will distribute all the shares it subscribed together with its new warrants to Icapital.Biz share owners as dividend in specie.

Is this what is planned? Only time will tell. We will wait and see.