LONDON (Alliance News) - Haydale Graphene Industries PLC saw its shares drop in early dealings on AIM Monday, after it raised GBP6.6 million in its initial public offering by placing 3.1 million shares at 210 pence a share.
However, the graphene company's shares were trading at 203 pence Monday morning, meaning its market capitalisation was below the initial valuation of GBP23.6 million.
Haydale is using the money raised in its IPO to expand the engineering, production, technical and business development teams to support product development; increase the capacity of graphenes and nanomaterials the group is able to functionalise; increase sales and marketing functions; to further enhance and develop intellectual property and know-how with external partners; and for general working capital requirements.
Cairn Financial Advisers and Hume Capital were the company's adviser and broker, respectively.
Haydale has developed a process to functionalise graphenes and other nano materials. Functionalisation is an essential component in the commercialisation of graphenes and graphene nano platelets. Haydale plans to commercialise its functionalisation process by providing technology to both raw material producers and industrial corporations.
"Our successful fundraising and IPO will contribute significantly to the development and progression of our enabling, proprietary plasma technology, which is capable of being tailored to produce a wide range of surface modifications; substantially improving compatibility between the nanomaterials and any matrix or binder material and so unlocking the potential that graphene
presents," Chief Executive Ray Gibbs said in a statement.
Graphene is a recently discovered material formed using carbon atoms, which has outstanding thermal, mechanical and electrical properties. Potential applications include its use in battery
and energy storage, electronic devices including bio-medical sensors, conductive inks and films plus polymer composite fillers and resins.
Haydale's IPO comes amid a pick up in new listings in London in 2014, after the financial crisis and ensuing economic downturn curtailed the market for IPOs.
Smoke and carbon monoxide alarm maker Sprue Aegis Monday added itself to the pipeline of companies set to list in London this year, saying it plans to apply for admission to AIM. It said it wants to raise about GBP8.0 million to fund working capital and product development. Some of its directors will sell up to 2 million shares in the IPO.
Sprue Aegis, which currently trades on the ISDX Growth Market but will withdraw from it, said it expects trading of its shares on AIM to begin about April 20.
In a separate statement, the company reported that its pretax profit rose to GBP4.9 million in 2013, from GBP3.2 million in 2012, as revenue rose to GBP48.4 million, from GBP37.8 million.
It will pay a final dividend of 6 pence, up from 4 pence in 2012.
"The first quarter of 2014 has been another record start to the year for Sprue, building on a strong first quarter last year. Continental Europe and UK F&RS market segments have both performed ahead of budget, while UK Retail had a slow start to the year compared to budget. Gross margin in the first quarter was in line with the board's expectations. The second quarter has started very
strongly with a record sales order book," the company said.
Sprue Aegis, which counts Tesco, Amazon, Screwfix and B&Q among its customers, successfully saw off a hostile takeover attempt by BRK Brands early in 2013.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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