LONDON (Alliance News) - Four companies comprising Aquatic Foods Group PLC, Motif Bio Ltd, Domaine Chanzy SA, and Bilby PLC are seeking admission the London Stock Exchange's junior market, which would see them raise at least GBP17 million in total if successful.
One of the quartet, Aquatic Foods Group, said it has already raised GBP9.3 million in a placing and subscription, resulting in a market capitalisation of GBP79.3 million, the largest of any AIM arrival in the year to date following the float of China-based Grand Group Investment, which had a market capitalisation of GBP27.1 million on admission.
The China-based marine foods and seafood processor and supplier, which supplies the export and local markets, said its main products are processed frozen seafood, seaweed-based foods and marine snack foods.
The proceeds of Aquatic's initial public offering will go towards buying machinery to increase process automation and to increase sales by investing in product development and distribution. Aquatic Foods said its strategy is based around improving awareness of its brand and strengthening its market position through advertising and promotion, broadening its domestic distribution network, and investing and strengthening product development.
It said it wants to target health conscious consumers by offering sustainably sourced deep-sea marine food. It said its revenue increased to CNY667.3 million from CNY276.4 million between 2011 and 2013, while its net profit increased to CNY118.6 million from CNY38.2 million.
Dealings in Aquatic Foods shares are expected to begin on Tuesday.
Meanwhile, Motif Bio Ltd, which will be renamed Motif Bio PLC on admission, is looking to raise at least GBP4 million through its IPO. A clinical stage biopharmaceutical company, Motif Bio aims to develop novel antibiotics designed to be effective against serious and life-threatening infections caused by multi-drug resistant bacteria.
It anticipates that its lead antibiotic candidate, iclaprim, could be ready for commercialisation within about 36 months.
Motif Bio also boasts MTF-001, a preclinical stage programme to design a best-in-class dihydrofolate reductase inhibitor that will be effective against multi-drug resistant bacteria. It will aim to market a once-daily antibiotic that can be injected and taken as a pill.
"Growing resistance to antibiotics has been described as a worldwide threat to health and several different new antibiotics will be needed to stave off the impending crisis," Graham Lumsden, chief executive, said in a statement.
According to the company, it is already discussing and negotiating with academic institutions and pharmaceutical companies to build a portfolio of antibiotic candidates through licensing.
The target proceeds will be used to advance the group's drug development programme and to provide additional working capital for at least 18 months.
Motif Bio said it is working to confirm in meetings with the US Food and Drug Administration and the European Medicines Agency in the first half of 2015 that the clinical development plan for iclaprim meets regulatory guidelines and that two Phase III trials can be conducted as proposed.
Motif is a partner of Amphion Innovations PLC, an AIM-listed medical and technology business developer that had a 32% stake in the AIM newcomer at the end of 2013. Amphion shares were up 5.6% at 3.30 pence on Monday.
Separately, Seedrs launched a campaign to enable investors to buy shares in winemaker Domaine Chanzy SA through the crowdfunding platform as part of its AIM IPO . The French company is looking to raise at least GBP1.9 million at 120 pence per share. In parallel with the crowdfunding campaign, Domaine Chanzy is raising funds through a placing led by a number of City corporate finance firms.
Meanwhile, Bilby, a holding company established to provide a platform for strategic acquisitions in the gas heating and general building services industries, is looking to raise GBP2.0 million to finance its own development and up to GBP4.5 million for its founders as they sell existing shares.
Prior to admission to AIM, Bilby will acquire P&R Installation Co Ltd through a share-for-share exchange. The group already provides gas maintenance installation and building maintenance services to housing associations and local authorities across London and the South East.
Customers include the Guinness Partnership, London & Quadrant, Gallions and the Royal Borough of Greenwich, Bilby said.
The proceeds for Bilby will be used to provide working capital as it eyes growth, as well as access to further financing for future acquisitions and expansions. It also wants capital to be provided for further investment in its systems, controls and processes.
"Admission to AIM will position Bilby to exploit a fast-expanding market that is driven by strict government regulations. This, combined with our exceptional operational track record, strategic and geographic focus and long-standing customer relationships will ensure Bilby is ideally placed for further strong organic growth," Phil Copolo, executive deputy chairman of Bilby and founder of P&R, said.
"Furthermore, the admission will enable Bilby to grow through a focused buy and build strategy that will help deliver new significant new growth opportunities for the group," Copolo added.
Elsewhere, the Sunday Times reported that US private equity firm Hellman & Friedman is eyeing a GBP2 billion takeover bid for Auto Trader, which could put an end to reported plans for a London listing for the marketplace for used and new cars.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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