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LONDON (Alliance News) - London's AIM market lost one of its biggest stocks Tuesday as Gulf Keystone Petroleum Ltd moved to the London Stock Exchange's main market, but the junior market got two new stocks as a resurgence in new listings on both markets continued.
Gulf Keystone Petoleum shares were up 2% at 104.25 pence as it moved to the main market, a move that the company thinks reflects its growth since its initial public offering on AIM back in September 2004. It didn't issue any new equity as part of the move.
"From today's main market platform, with all the corporate governance expected of a main market company, we have a clear plan for continuing to grow and create further value from our world class operations in the Kurdistan Region of Iraq," Gulf Keystone Chairman Simon Murray said in a statement.
"With an extremely active operational schedule, the expected near term ramp up in production from Shaikan, a constantly improving political backdrop and a strong team in place, we are extremely positive about Gulf Keystone's future," he added.
Gulf Keystone was the sixth-biggest stock on AIM by market capitalisation before its move to the main market. However, its valuation was well below that of online retailer ASOS, which has said it will stay on AIM for the time being, even though a move to the main market would likely see it propelled into the FTSE 100.
Gulf Keystone could go into the FTSE 250 at the next index review, based on its current market capitalisation.
Despite the loss of Gulf Keystone, the resurgence in new listings on AIM continued unabated Tuesday as Xeros Technology Group PLC, the company that has developed a new cleaning system involving polymer beads, started trading Tuesday.
The company, a spin-out company from the University of Leeds, has developed a patented polymer bead cleaning system and is targeting the product at the laundry market.
It said it raised GBP27.6 million by placing 22.4 million new shares at 123 pence each. It had an initial market capitalisation of about GBP80 million at that price, although its shares were trading slightly lower at 117.725 pence midday Tuesday.
IP Group PLC, which invests in intellectual property-based businesses, said it is beneficially interested in nearly 7.8 million Xeros shares after the IPO, an 11.9% stake which is valued at GBP9.5 million at the placing price of 123 pence. IP Venture Fund, a venture capital fund managed by IP Group, will also have a 6.7% stake with a beneficial interest of about 4.3 million shares.
In a statement, IP Group said it committed GBP2.2 million to the Xeros placing, while IP Venture Fund committed GBP1.3 million. IP Group will book an unrealised fair value gain of GBP4.1 million at the placing price.
On top of that, healthcare company Venture Life Group PLC raised GBP5.4 million before expenses in its IPO placing at 109 pence each. Its initial market capitalisation is expected to be about GBP26.4 million when its shares start trading Friday.
Venture Life focuses on developing products for ageing, and will complete its acquisition of Italian cosmetics, dermo-cosmetics and medical devices maker Biokosmes Srl once it lists. The IPO money will be used to satisfy the initial payment for the acquisition, as well as strengthening Venture Life's commercial team, new product development, and collaboration projects, particularly in China and the Far East.
"We are targeting a rapidly growing segment of the global healthcare market where the ageing population is increasingly required to fund its non-critical healthcare needs, and where early use of non-drug treatments may slow down, or even significantly delay, the onset of chronic conditions," Venture Life Chief Executive Jerry Randall said in a statement.
"The funds raised from the placing will allow us to expand the business significantly. In particular, we will be investing in commercial resource and product development in order to capitalise on the many opportunities we have at this time. Venture Life is an ambitious and fast growing company, with a clear strategy for growth, and the fund-raising and Admission to AIM are important milestones for the group," Randall added.
There has been a jump in the number of IPOs on AIM and the main market in recent months, after the financial crisis and ensuing economic downturn curtailed demand for new issues for several years.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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