Nuveen Investment Quality Municipal Fund to offer 3.5 million shares

By Toni Weeks

San Luis Obispo, Calif., April 22 -Nuveen Investment Quality Municipal Fund, Inc. plans to offer 3.5 million shares of common stock, according to a 497 filing with the Securities and Exchange Commission. Shares may be offered via at-the-market transactions, an underwriting syndicate and/or privately negotiated transactions.

The diversified, closed-end management investment company seeks to provide current income exempt from regular federal income tax with a secondary objection of enhancing portfolio value relative to the municipal bond market. It seeks to achieve its objectives by investing at least 80% of its managed assets in investments that generate income exempt from federal income tax as well as in municipal securities that the fund's investment adviser believes are underrated or undervalued.

Under normal circumstances, at least 80% of the fund's managed assets will be invested in investment-grade securities.

Christopher L. Drahn, senior vice president of subadviser Nuveen Asset Management, LLC, is the fund's portfolio manager.

Proceeds will be used to invest in municipal securities.

The fund's shares trade on the New York Stock Exchange under the symbol "NQM." Shares closed at $16.12 on Monday.

The fund has previously offered MuniPreferred shares, all of which were redeemed as of Oct. 31, 2011, and variable-rate demand preferred shares.

Stockholder fees will consist of a maximum sales charge of 4%. Management fees are 0.91%, with total annual expenses expected at 1.66%.

Chicago-based Nuveen Fund Advisors, LLC will be the investment adviser.

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