PAC was already my largest position but I was busily buying up as many as I could this morning.

PAC is similar to PNI and owns stakes in Fund Managers. Their largest holding is 5% stake in GQG which yesterday confirmed it is listing on the ASX in late Oct. They are raising 1.2bil and have confirmed bids of 800m from cornerstone institutions with the prospectus going out to the wider market today.

The price range for the IPO is 2 – 2.20 but with demand clearly strong I think the top end is likely. PAC are selling 20% of their stake at the IPO price.

At a price of 2.18 GQG will be worth around 6.3billion and PAC will receive $65million in cash and $250 million in GQG shares. The remainder of PACs holdings are worth ~$265mil. 

IPO bids will likely be scaled back and it is a decent chance that PAC will likely enjoy further value from GQG opening at a small stag profit on day 1.

At $8 PACs market cap is currently around 400mil and using the ballpark calculation above it is worth around 600mil.

Not many people have heard of PAC but over the next 3 weeks The GQG IPO will get a lot of press in the AFR and other mainstream circles, so I expect they will know it shortly. I think this quick rerate will continue playing out and the SP will head toward $10+ as the GQG IPO date approaches.