Octopus Apollo VCT PLC on Friday said it intends on increasings its proposed fundraise by £30 million.

The London-based investor in higher risk small businesses announced in March plans to raise £35 million through a share subscription with an over-allotment facility of a further £15 million.

Following strong investor demand, the total offer size will be increased to £85 million and the company is to accept applications from new investors on a date yet to be announced.

In line with an agreement relating to the offer increase, the company’s manager Octopus Investments Ltd is to receive a 3.0% charge of funds raised by the company.

This will be in addition to a further 2.5% charge of funds raised from direct investors who did not use a financial intermediary.

Furthermore, Octopus Investments will receive a charge of 0.5% of the net asset value of the investment amount received from direct investors, payable for nine years.

Octopus Apollo said that applicants who apply before May 31 will benefit from a 2% cost reduction, whereas those who apply later but before June 28 will receive a 1% reduction.

In both instances the reduction will be received in the form of additional new shares paid for by Octopus Investments.

Additionally, existing shareholders of any Octopus managed trusts will be entitled to a 1.0% loyalty discount throughout the full duration of the fundraise, also in the form of new shares.

Octopus Apollo shares were untraded at 48.60 pence each in London on Friday morning.

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