Tuesday 22nd January 2008
Designcapital begins trading on AIM
A company planning to invest in furniture brands has floated on AIM with a market capitalisation of almost £6 million. Designcapital raised net proceeds of £4.1 million from the placing and may bring in a further £7 million over the next 12 months through deferred subscriptions.
Luxadvor, a Luxembourg-based investment firm owned by Russian industrialist Sergei Pugachev, intends to invest £3.4 million in Designcapital over the coming year, according to the company.
The placing shares, floated at 10p, comprise 58 per cent of the company’s share capital.
Frederick Bobo, executive chairman of Designcapital, says: ‘Currently, the European luxury designer furniture industry is highly fragmented, with more than 200 relatively small companies with limited managerial and marketing capabilities.
‘Designcapital aims to consolidate this marketplace by acquiring, nurturing and bringing to maturity aspirational luxury-design furniture brands and retail concepts.’
The company will invest in businesses it considers to be undercapitalised. Its interest in investee businesses could range from a minority position to full ownership, and it may also consider indirect investment through other quoted or unquoted companies, or a joint venture.
Nick Britton
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