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Hardware & electrical equipment

Cable protection group Tekmar surges on AIM debut

Tekmar shares are up by nearly 20% on Wednesday morning, the group’s first day of trading on the junior market

Shares in Tekmar Group PLC (LON:TGP) surged by almost a fifth as the cable protection specialist made its debut on AIM.

The Middlesbrough-based company, which works with energy companies to protect their cables and pipes, sold shares at 130p ahead of its initial public offering, raising just shy of £62mln.

At 9am on Wednesday, its first day of trading, shares were being offered at 155p – 19% higher than the IPO price.

“Today is an historic day for Tekmar, marking the start of the next phase of our planned expansion and development,” said chief executive James Ritchie.

“Being an independent quoted company brings additional advantages and prestige to the group and we firmly believe it will enable us to accelerate our growth and maximise our potential.”

Tekmar, which has a market capitalisation of around £65mln, revealed earlier this month that it wanted to join AIM to enhance its profile and brand recognition, while it said the cash injection would help it to expand into new markets and geographies.

In the year ended March 2018, the firm generated sales of £4.9mln and recorded adjusted underlying earnings (EBITDA) of £4.9mln.

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