What’s cooking in the IPO kitchen?
AIM
appScatter Group—Sch1 from the B2BSaaS platform that allows its paying users to distribute their apps to, and manage their apps on, multiple app stores. Following admission, appScatter intends to launch the public version of the platform, at which point the platform will be available to all app developers and publishers worldwide. Offer TBC, expected early Sept 2017
Warehouse REIT - The Company will invest in a diversified portfolio of UK warehouse assets located in urban areas. The Company is targeting a dividend yield of 5.5p equivalent to a yield of 5.5 per cent. for the year ending 31 March 2019. Issue price 100p. Raising up to £150m.
Destiny Pharma—A clinical stage biotechnology company - lead asset (XF-73) targets antibiotic-resistant bacterial infections in hospitals. Offer TBA. Due early September.
Avingtrans (AVG.L) Sch1 on its Reverse Takeover of Hayward Tyler (HAYT). Combined market cap of c.£75m. Expected 01 September 2017
OnTheMarket—Intention to float on AIM to raise c. £50m which will be used to fund the growth of the OnTheMarket.com portal, already the third biggest UK residential property portal provider. Expected valuation £200m to £250m.
Main Market Standard Listing
Chesterfield Resources-newly established company formed for the purpose of acquiring a company, business or asset that has operations in the mining sector that it will then look to develop and expand. Raising £1.3m at 5p. Due 29 Aug. Mkt cap £1.4m.
Main Market Premium Listing
Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 15 September 2017
Breakfast buffet
Empyrean Energy (LON:EME) 9.25p £36.91m
‘The oil and gas development company with interests in China, Indonesia and the United States, is pleased to announce the 3D seismic data in Block 29/11 (Empyrean 100% Working Interest during Exploration Phase) has been successfully acquired. The survey commenced on 6 June 2017, and with acquisition of the raw data now fully complete the seismic vessel is de-mobilising from the survey area. The survey acquired 580 km2 of new 3D seismic data over the permit, including key prospects - Jade and Topaz. Additional to the 3D data acquired within Block 29/11, a further 28 km2 of 3D were acquired as part of the overall survey along the western boundary of the Block and extending over the LH 23-1d oil discovery, west of Empyrean's permit. The additional data is expected to allow Empyrean to evaluate the extent of a potential geological tie between the LH 23-1d oil discovery and Jade and Topaz.’
Global Invacom Group (LON:GINV) 8.5p £22.07m
The satellite communications equipment provider listed on the Singapore Exchange and the U.K. AIM Market, has successfully live-tested breakthrough technology that permits live, high quality and large-scale event video streaming over a Wi-Fi network. The Bx-WiFi technology - which stands for Broadcast WiFi - was developed through a partnership with the BBC Research & Development, and the University of Hertfordshire, under a European Space Agency (ESA) contract, and was successfully live-tested at the Edinburgh Fringe Festival on 12, 13 and 18 of August 2017.Bx-WiFi enables simultaneous streaming of uninterrupted audio or video content from multiple sources - such as satellite feed, 'live' video or digital radio - to thousands of smartphone or tablet devices all located in the same hotspot (for example at an event). FYDec17E rev S$183.07m and S$5.63m. Div 0.7c.
Premier African Minerals (LON:PREM) 0.47p £25.45m
The multi-commodity mining and natural resource development company focused in Southern and Western Africa has today conditionally agreed to acquire from Sabona Investment Limited SA an additional interest of 908,334 shares in Circum Minerals Limited, (representing 1 per cent) at a value of $1.50 per Circum share for an aggregate consideration of $1,362,501.00. Following completion of the Purchase, Premier's holding in Circum will amount to 5.2%. Circum is a privately-owned potash development company which operates the Danakil Potash project in Ethiopia. Circum has published an optimised DFS which reports a pre-tax net present value ("NPV") for the Danakil Potash project of $2.8 billion and a pre-tax nominal internal rate of return ("IRR") of 29%. The after-tax NPV and nominal IRR were $2.1 billion and 26%, respectively.
Craven House Capital (LON:CRV) $4.88 $11.59m
Agreed terms regarding the proposed transfer of its shareholdings in Ceniako Ltd and Craven House Industries Ltd ("CHI") to Toronto Stock Exchange listed DLC Holdings Corp (TSXV: DLC) in consideration for new ordinary shares in DLC Holdings Corp. DLC is an agricultural investment company, focused on owning and operating farmland and integrated agribusinesses. The proposed transaction is intended to unlock the value of the Company's Brazilian land holdings.. Benefits include:
· A majority shareholding of DLC, which will in turn have majority shareholding in Ceniako.
· A "pure play" agricultural investment vehicle, which will provide investors access to a distinct asset class.
· Control of a publicly listed company with securities, which can be used as an acquisition currency for future acquisitions.
No forecasts.
Finsbury Food (LON:FIF) 113p £147.3m
The UK speciality bakery manufacturer of cake, bread and morning goods for both the retail and foodservice channels, is proposing to close its Grain D'Or business. Grain D'Or is a provider of premium baked goods for the UK pastry sector, based in London. The Company will be entering into a formal consultation period with circa 250 employees concerning the proposal.
The Company has proposed the closure of Grain D'Or as the business has been historically loss making. In recent years, the Company has implemented a range of initiatives to improve the business including strict cost controls and introducing new working practices. Despite this, during the 12 months to 1 July 2017, Grain D'Or generated £28.5 million in revenue but produced an overall operating loss. FYJun17E rev £311.15m, PBT £16.98m. PE c.12x, yield 2.7%.
Robinson (LON:RBN) 115p £19.1m
HYJun17 results from the plastic packaging manufacturer. Revenue of £13.5m was 6% higher than the same period in the previous year, lifted by favourable exchange rates and higher resin prices passed on to customers. Allowing for these effects, sales volume in the first half was very similar to 2016. Increased costs, including some resin costs not yet passed on to customers, have reduced gross margins and operating expenses have been increased primarily by our action to strengthen the sales team. The resulting profit before tax was £0.3m lower than the same period last year at just above break-even for the first six months (2016: £0.3m). Interim divi flat at 2.5p. ‘We do expect to see sufficient new business coming through in the second half to achieve growth in revenue for the year as a whole and we expect to continue to build the pipeline for further growth in 2018.’ FYDec17E £30.5m and £2.1, PBT. Div 5.7p. C.13x PE and 4.4% yield.
Bluejay Mining (LON:JAY) 18p £136.4m
HYJun17 results from the exploration company with projects in Greenland and Finland.
Successfully defined a maiden JORC resource of 23.6Mt at 8.8% ilmenite (in-situ) at the Pituffik Titanium Project in Greenland - this includes a high-grade zone equal to 7.9Mt at 14.2% ilmenite (in-situ) - and drilling underway to increase further.
Exploitation licencing application well advanced - the finalised Environmental Impact Assessment ('EIA') and Social Impact Assessment ('SIA') are expected in the coming months, with the full Exploitation Licence anticipated in H1 2018
Construction of the mine plant and supporting infrastructure due to commence in early 2018.
Cash of £5.7m. Pre-tax loss of £785k.
Mkango Resources (LON:MKA) 3.13p £2.62m
The Government of Malawi has granted a further two year renewal, from September 8, 2017, for Exclusive Exploration Licence ("EPL") 0303/10R3 in southwest Malawi.
The main exploration targets in the Thambani licence are uranium, niobium, tantalum, zircon and other associated minerals. In May 2017, Mkango announced the results of recent exploration at Thambani. Assay results from 85 rock grab samples returned high grade uranium, tantalum and niobium values, ranging up to 3.3 % U3O8, 1.9 % Ta2O5 and 6.0 % Nb2O5. 35 of the samples graded above 500ppm U3O8and 24 graded above 1,000ppm U3O8. Mkango is currently evaluating strategic options for Thambani, including opportunities to joint venture or spin-off the project, and other potential avenues to create value.
Savannah Resources (LON:SAV) 5p £28.1m
Phase one of the pre-feasibility study ('PFS') into the potential development of the Mutamba Mineral Sands Project, Mozambique (Figure 1) has now commenced.
Stage one of the Mutamba PFS is now underway, which will include a gap analysis, options review, project planning and budget finalisation for stage two of the PFS
· Mineral sands expert TZMI has been appointed to complete this phase of the work
· It is anticipated that this work will be finalised in coming months
· The completion of the PFS is a key Consortium milestone and will result in Savannah earning a 35% interest in the Mutamba Consortium
Highlands Natural Resources (LON:HNR) 26.25p £25.4m
Highlands has executed a participation agreement providing additional third-party funding for the Company's drilling programme at its East Denver Niobrara shale oil and gas project in Colorado. Highlands' counterparty in the Participation Agreement is a leading oilfield services company, with global operations and listed on the New York Stock Exchange .
·Drilling at East Denver has already commenced
·Highlands retains a 70% long-term working interest in the Programme Wells after a return of invested capital, while the Company funds only 51.25% of drilling and completions costs
Formation of a joint technical team, wherein highly experienced staff from the Participant will engage with Highlands' internal team to jointly evaluate and execute technical decisions.
FYMar18E rev £7.6m, PBT £4.5m PE <5x.