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LONDON (Alliance News) - Rosslyn Data Technologies Group PLC started trading on the AIM market Tuesday, while hostel operator Safestay PLC announced the pricing of its initial public offering ahead of the start of its trading on Friday.
Rosslyn Data Technologies provides a cloud-based enterprise data analytics platform called RAPid. It raised GBP10 million through the placing of 30 million shares at 33 pence each. At the placing price, Rosslyn has a market capitalisation of GBP24.9 million. At midday Tuesday, the shares were quoted at 35.75 pence, up 0.7%.
Cenkos Securities PLC is acting as Rosslyn's nominated adviser and broker.
Rosslyn said it will invest GBP1.2 million of funds from the placing to expand its sales force, and GBP1.5 million to invest in product development and management. The remainder of the proceeds will be used for general working capital, Rosslyn said.
For the year to end-April 2013, Rosslyn posted a gross profit of GBP1.6 million on revenue of GBP1.8 million.
Safestay PLC priced its own IPO on AIM Tuesday at 50 pence per share, giving it a market capitalisation of GBP6.6 million. The company expects to begin trading on AIM on Friday.
Safestay owns and operates a hostel brand, and was established as a joint venture between Moorfield Group Ltd and Safeland Group PLC in April 2011. However, in January Safeland announced that it would be de-merging the business, buying out Moorfield Fund's interest.
During its first full calendar year, Safestay posted an operating profit of GBP494,000 on revenue of GBP1.9 million.
Safestay has raised a total of GBP7.6 million, raising GBP4.8 million through the placing of 9.6 million shares at 50 pence and a further GBP2.8 million through the issue of convertible loan notes.
Safestay will use GBP6.7 million from the fund raising to pay a consideration that is due to Moorfield Funds.
Westhouse Securities is acting as Safestay's nominated adviser and broker.
"The hostel market is where the budget hotel market was 20 years ago and ripe for development. Safestay has a proven, profitable model to take forward," said Chairman Larry Lipman in a statement.
Safeland noted that upon admission of Safestay's shares, each Safeland shareholder will receive one new Safestay share for every 4.66 Safeland shares held.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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