Augmentum Fint. Share Price (AUGM)

A report on Sky Business is suggesting a major fundraiser by our largest investment Tide:

“ Tide, the business banking services platform, has hired advisers to orchestrate a fresh share sale as it pursues rapid growth in the UK and overseas.

Sky News understands that Tide has been holding talks with investment banks including Morgan Stanley about launching a primary fundraising worth in excess of £50m in the coming months.

The share sale may include both issuing new stock and enabling existing investors to participate by offloading part of their holdings, according to insiders.

It was unclear at what valuation any new funding would be raised.

Tide was founded in 2015 by George Bevis and Errol Damelin, before launching two years later.

It describes itself as the leading business financial platform in the UK, offering business accounts and related banking services.

It now boasts a roughly 11% market share in Britain, along with 400,000 SMEs in India.

Tide, which employs about 2,000 people, also launched in Germany last May.“

Hmmm, Jurys out I am afraid, maybe to focused.

Herald Investment Trust up 17.7% since Aug 22, whereas Augmentum is still paralysed around 100p since Aug 22.

Hold both albeit five times as much in Herald - lets see where we go in the next few months with 3 years my limit.

Here is s summary of what he writes:

"This fintech fund is a stand-out buy"

"Proforma cash backs up 30 per cent of the £162mn market cap"

"Seventh portfolio company exit, all .....at or above the last published valuation"

"Exit price (of last exit, FullCircl) represents a 75 per cent increase on the company's last published valuation"

"(NAV, after this exit) implying the shares in the £162m market capitalisation (of Augmentum) are trading on a massive 42.5 per cent discount to book value"

"top 10 holdings, which represent 81 per cent of the total portfolio valuation, reported average annualised revenue growth (of) per cent earlier this year and are cash generative (five positions) or have an average of 20 months cash runway."

"They are well worth buying ahead of the forthcoming results. Buy"

Looks like another exit for Augmentum sadly this time at what looks like a price that will wipe all value of the stake. Amazing that it’s gone from £10m stake valued in the September 2023 to nothing. Also, interesting that Augmentum haven’t put out an RNS related to the acquisition.

Maybe Tencent were getting impatient on an IPO and realising any value in their investment.

https://thepaypers.com/online-mobile-banking/tencent-offloads-stake-in-british-challenger-bank-tide--1269598