Contango management have chosen an interesting time to float their new mid cap income LIC (listed investment company), launching a $200 million raising for the company as investor sentiment remains subdued and AGM season sees the slate of earnings downgrades continue.

The pending initial public offering comes as Contango MicroCap traded at a massive 20.59 per cent discount to its net assets during September – a gap that makes it vulnerable to activist investor for better capital management.