Guernsey-based commercial dispute fund Burford Capital has completed London’s second-largest initial public offering (IPO) of 2009, raising £80 million ($130 million).

Burford placed 80 million shares at an offer price of £1 a share. The company's principal, Christopher Bogart, said he was "thrilled" with the IPO and the "completely superb backing of high-quality investors".

Investors included Fidelity, Baillie Gifford and Invesco, which took a 45% stake in the company.

Burford shares will begin trading on the London Stock Exchange's AIM market on October 21.

Bogart said Burford planned to be fully committed within 18 to 24 months.

The IPO is believed to be the largest-ever capital raising for dispute finance as an asset class. Another commercial dispute fund, Juridica Investments, was listed on AIM in December 2007. A small number of non-listed funds also invest in litigation.

Bogart said Burford would invest in US commercial litigation and international arbitration. The company will fund the cost of cases, agreeing a percentage share of any awards made at the conclusion.

"I think there will be other funds and I frankly welcome them, because I think the market could use more capital and more visibility," Bogart told Hedge Funds Review.

Fox-Pitt Kelton acted as sole bookrunner and broker on the IPO, with Execution as co-lead manager. Latham & Watkins was the legal adviser.

Burford Capital is a limited liability, closed-ended investment company registered in Guernsey. Its fund administrator is International Administration Guernsey (IAG) with legal counsel being provided by Ogier and PricewaterhouseCoopers as auditor.