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Proactive news summary: Canadian Overseas Petroleum, Rame Energy, Forte Energy, Kromek, Amphion, AFC Energy


The IPO market is still buoyant, with Canadian Overseas Petroleum (LON:COPL, CVE:XOP) soaring on its maiden trading day on London’s main market.

The shares, having been placed at 13.5p to raise £2.4mln for its exploration efforts off the coast of West Africa, finished the day 18p, a rise of a third.

Speaking to Proactive Investors, chief financial officer Christopher McLean said a listing on the main market made sense for the company, given its track record and existing obligation to adhere to Canadian listing requirements.

Rame Energy (LON:RAME) also joined the public ranks on Friday, but instead chose a move to AIM.

Its listing was well received by investors, who sent the share price up 1p on debut to 19p.

The Chile-focused group, which supplies power to the industrial market, raised £2.1mln, giving it a stock market valuation of £17mln.

With the injection of cash supports Rame’s programme to develop the first of two wind power sites in Chile. The wind farm will have capacity of 15 megawatts (MW), and is scheduled to come online by the end of this year. It is working with Santander Investment Chile on these projects.

Blue chip clients include miners such as BHP Billiton and Barrick Gold, as well as Akzo Nobel.

In the next three years Rame aims to establish itself as an independent power producer, and is targeting operating capacity of 300MW within three years.

Chief executive Tim Adams explains that the industrial market is far more attractive than the traditional utility play.

“It’s a process of education. On the face of it, it can be viewed as a wind company and therefore that could be feed-in tariff-dependent, which it’s not,” he told Proactive Investors.

“It’s a business that’s very much focused on power solutions to a particular industrial customer base and people see real strength in value in that proposition because there is an opportunity to genuinely see yields and cash returns out of power sales that are so dramatically different to traditional utility plays, which are essentially scale-driven, not return-driven.”

Forte Energy (LON:FTE, ASX:FTE) announced the much-anticipated acquisition that it had suspended its shares in Australia ahead of.

The company is set to expand its portfolio as it unveiled a C$8.5mln acquisition of the uranium assets of European Uranium Resources.

The firm has two uranium projects, spanning around 39.7 sq km in Slovakia, and the deal will create a larger, diversified globally focused exploration and development firm.

The shares eased on Friday, having shot up in anticipation of the deal.

Kromek (LON:KMK) shareholders have been down in the dumps of late after the shares took a battering following a profit warning late last month. But they were cheered on Friday by news of a contract win.

Shares jumped 31% to 53p after the supplier of patented radiation detection technologies to the medical, security and nuclear markets announced that it has signed a long term contract with an established manufacturer of x-ray diagnostics and analysis equipment in China.

The shares are still down 30% this year.

Amphion Innovations (LON:AMP), which retains an 11.6% stake in the business, was hoisted 20% higher to 3p by the news.

AFC Energy (LON:AFC) landed its first order for a hydrogen powered fuel cell system from AIM-listed waste to energy group Powerhouse (LON:PHE).

The Beta+ fuel cell test system should be delivered by the end of 2014 and will use hydrogen produced by Powerhouse’s gasification technology, which converts organic matter into syngas, to generate clean energy.

Clinigen (LON:CLIN) meanwhile increased its debt facility with Royal Bank of Scotland to £35mln, with an option to increase it by a further £15mln.

The new facility replaces its current £20mln arrangement with RBS and is secured on the global pharma and services group’s assets.


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