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Manufacturing & engineering

Surface Transforms chairman 'humbled' as retail investors pile into open offer

Surface Transforms (AIM:SCE) chairman said he was ‘humbled’ by the support for its latest open offer as retail investors piled into the deeply discounted share sale.

The high-tech carbon brakes maker, which supplies Formula One and ultra-expensive Supercars, said applications were three and quarter times (226%) the 200 million shares originally offered at 1p.

As a result, the offer was upped to 300 million shares (£3 million), which with a subscription (£6.5 million) and £13.2 million loan makes £22.7 million of new funding in total, and enough to cover the additional costs it has faced of its production ramp-up, the company said.

David Bundred, non-exec chairman, commented: "Against the background of the recent difficult Company trading background, we are particularly appreciative, if not humbled, by this shareholders' support.

“The board is now confident that we have sufficient funding for our working capital and capital expenditure needs, thereby enabling us to seize the commercial opportunity available of a £390m order book and £400m confirmed contract prospective pipeline."

In early February and before it flagged its production issues, the AIM-listed shares had been trading at around 36p.

Shares rose 2% to 1.28p.

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