All IPO & City News
North Sea oil company floats on AIM
Valiant Petroleum, which owns a number of oil fields in the North Sea, has floated on AIM, raising £50 million at £7.50 per share. The initial public offering (IPO) values Valiant at £197 million, making it the second-largest company to float on AIM this year.
Managers extol ‘great time’ for VCTs
Members of the Association of Investment Companies (AIC) remain optimistic about opportunities for VCTs over the coming year. Some managers even claim the credit crunch has helped the trusts by lowering the valuations of potential investee companies.
Sirius to raise £6 million
Sirius Exploration intends to seek up to £6 million after acquiring Sierra Leone-focused Njahili Resources. The AIM-quoted company plans to change its name to Xanadu Resources after the all-paper reverse takeover of Njahili.
PAQ bags £1 million on AIM
A Chinese manufacturer of own-brand bags for mobile phones and laptops has raised £1 million through an initial public offering on AIM at 6p. PAQ International, which also supplies its products to companies such as luggage brand Samsonite and French supermarket Leclerc, will use the funding to assist its move into retail later this year.
Foresight to manage Noble VCT
The directors of Noble VCT have announced that from 1 April it will be managed by venture capital group Foresight. The decision, aimed at increasing the £22 million fund’s exposure to unquoted investments, precedes a possible merger with Foresight 3 VCT, subject to approval by the shareholders of both companies.
Keycom clears debts via PLUS
PLUS-listed Keycom, which installs phone and broadband connections in student accommodation, has raised £1.5 million through a placing. The company has also converted loan notes worth £4.5 million held by three of its institutional investors into equity.
IFAs tip mature VCTs over new launches
Almost two-thirds of independent financial advisers (IFAs) believe that established VCTs will be most popular with investors this year, according to research from Noble Fund Managers. One third of IFAs expect newly launched VCTs to find most favour, while only five per cent back ‘C share’ issues.
Israeli group targets PLUS
Investment fledgling MGIC is seeking £1.5 million at 10p to back early-stage internet ventures in Israel. Axiom Capital is handling the PLUS offer for MGIC, which is headed by Amir Raveh and Robert Pincas, two leading lights at Anglo-Israeli investment concern MG Equity Partners.
Packaging business moves to AIM
API Group, a manufacturer of packaging materials, has completed its move to AIM and cancelled its shares on the London Stock Exchange’s main market. The move follows cash flow problems disclosed late last year, which API resolved through an open offer underwritten by its two largest existing shareholders, raising £8 million.
2008 will be bloody, says AIM broker
Richard Feigen, MD of broker and nominated adviser Seymour Pierce, says that there may be more trouble ahead for AIM stocks. ‘The beginning of 2008 will be quite painful, with a lot of blood on the floor, but the market will turn during the year, and possibly early in the year,’ says Feigen, whose firm is broker to 93 AIM-listed companies.
Bonus bounty in the City
City workers appear to have escaped the global financial squeeze as bonuses and salaries continue to rise, research by recruitment specialist Morgan McKinley has found.
AIM non-executives poorly managed
Smaller quoted companies, mostly listed on AIM, are failing to manage their non-executive directors (NEDs) effectively, according to research. NEDs are inappropriately remunerated, ill-trained and poorly prepared for board meetings, says the survey from City law firm Speechly Bircham and the Quoted Companies Alliance (QCA).
Double-digit returns emerge from Chrysalis
Chrysalis VCT, which invests primarily in unquoted companies, generated double-digit returns for its investors in the year to October. But the kind of lucrative exits that boosted profits in 2007 may prove more elusive this year due to a 'less buoyant climate', according to the company's management.
Engineering business raises £67 million on AIM
Kentz, an engineering and construction group, has raised £66.7 million through an initial public offering (IPO) on AIM. This is the largest AIM IPO for several weeks following what has so far been a quiet start to 2008.
VCTs launched to profit from credit crunch
Investment banking group Shore Capital is launching two ‘credit crunch VCTs’ which will target investment opportunities thrown up by tighter borrowing conditions. Two new Puma VCTs, which aim to raise £40 million between them, will provide secured loans to companies finding it difficult to raise finance from banks.
PLUS shell seeks reverse takeover
An investment vehicle seeking a suitable target for a reverse takeover in the financial sector has raised £1 million on PLUS. Lambolle Partners was formed by chairman Michael Edelson, who sits on the boards of several AIM-listed companies, and non-executive director Emma Myers, a director of IT services business Oxygen Ventures.
Horse racing services company floats on AIM
Turftrax, a company which provides technical and ground management services to the horse racing industry, has floated on AIM with a market capitalisation of £17.6 million. The placing at 40p raised gross proceeds of £3.2 million.
AIM subdued in 2007
Although new issues on AIM raised £6.2 billion last year, fewer companies joined the market than during 2006, according to research from GrowthBusiness’s sister publication Growth Company Investor. There were 222 new entrants in 2007 compared with 362 the previous year, a fall of 39 per cent.
Sweet China in £4.3 million comeback
Chinese chocolate maker Sweet China is returning to AIM with a £4.3 million acquisition and £2.7 million placing, and says there are bigger deals to follow. Floated as a shell in 2005 but delisted the following year, the company says it expects to re-list this month, after clinching its long-delayed purchase of confectionary business Essential Box.
Close Ventures MD sees silver lining to recession
Patrick Reeve, managing director of VCT provider Close Ventures, is anticipating a recession in the UK, but says the downturn will offer good opportunities for VCTs to invest funds they have already raised. He adds that Close, which manages £240 million in its non-AIM VCTs, is looking forward to a year of sustained activity both in investments and realisations.
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