There was that rarest of sightings on AIM – the lesser spotted IPO.
Pulsar Helium, which listed on Friday raising around £5 million, got off to a decent start with its shares moving 12% higher in the first few hours of trading to 28p.
And while the appetite for new listings has been subdued (and that’s putting it mildly), new helium companies appear to have few problems finding investment.
HeLIX Exploration PLC (AIM:HEX) and Georgina Energy PLC (LSE:GEX)set the IPO trend, while Helium One Global Ltd (AIM:HE1, OTCQB:HLOGF), a stalwart of the small-cap exploration sector, laid most of the groundwork.
H1’s efforts in Tanzania showed it was possible to sink a well and find and isolate the inert gas in a way broadly similar to exploiting conventional hydrocarbons.
New subsector
Now we are seeing a flurry of interest from companies that have either converted to helium from more traditional prospecting or have used stock market-listed shells to find and float assets.
So, from a single UK helium listing just over a year ago, we have a vibrant sub-sector that boasts names such as Mendell Helium (formerly Voyager Life), Mosman Oil and Gas Ltd (AIM:MSMN), Predator Oil & Gas Holdings PLC (LSE:PRD), Zephyr Energy PLC (AIM:ZPHR, OTCQB:ZPHRF) and 8Mile (which was BlueJay Mining).
So, why all the fuss? Well, helium plays a crucial role in the modern economy due to its unique properties.
It is a lightweight, non-reactive gas that doesn’t burn or explode, making it ideal for various high-tech applications.
It is vital for cooling the powerful magnets in MRI scanners, which are essential in healthcare diagnostics.
AI revolution
It is also used in the production of semiconductors, which power the electronics in everything from smartphones to computers – so it will be central to the AI revolution.
In scientific research, helium cools particle accelerators and nuclear reactors. It’s also crucial in space exploration for purging fuel tanks and pressurising rocket systems.
The demand for helium is high because it’s non-renewable; it escapes into space once released, making it a valuable and finite resource.
Lesson over. Now let’s turn to the wider market. The AIM All-Share had a solid week, advancing 1.4% to 744.11, marginally outperforming a buoyant FTSE 100.
Big riser
One standout was CloudCoCo PLC (AIM:CLCO), which surged 180% to 0.32p after announcing the sale of its IT services subsidiary for £9.2 million, a move that will help clear its debts. The company also revealed it is in advanced talks about selling its Connect data centre services business.
Mothercare PLC (LSE:MTC) shares jumped 24% on Friday to 4.37p following news of a refinancing, joint venture, and return to profitability. Investors were particularly excited about a tie-up with Reliance Brands to target key markets like India and Bangladesh, where the brand is expected to resonate strongly.
Oncimmune Holdings PLC (AIM:ONC)enjoyed a positive end to a volatile week with the shares rising 12% to 15.6p on Friday. The autoantibody profiling specialist unveiled plans to recapitalise the business, aiming to raise at least £2 million while slashing its debt by half.
Fall overdone?
Emmerson shares dropped 72% this week, which many believe to be an overreaction.
The drop followed an ‘unfavourable recommendation’ in the Environmental and Social Impact Assessment (ESIA) process for its Khemisset Potash Project in Morocco.
However, Panmure Liberum noted that this is not the formal decision from the regional investment authority, reminding investors that a previous rejection had been overturned at the ministerial level.
Oxford BioDynamics PLC (AIM:OBD) had an equally rough five trading days, with 70% of its market value wiped out after announcing it was seeking new funding.
And the rest
The company outlined plans for senior staff to take a quarter of their pay in newly issued shares. It revealed a review into further funding options, alongside potential asset sales or a spin-off of its US division. The stock ended the week at 1.17p.
Shares in security technology firm Thruvision tanked 41% to 9.5p after it sounded the earnings alarm. The update came with this little nugget: Chief executive Colin Evans would leave the group to "further his non-executive directorship portfolio".
Finally, Versarien PLC (AIM:VRS, OTC:VRSRF) shares slumped 41% to 0.3p after the advanced materials specialist raised £450,000 by issuing cut-price shares.