What’s cooking in the IPO kitchen?
AIM
AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 6 Nov. The Uis Tin project (Namibia) is considered the flagship tin asset within the portfolio, as this was once the largest open cast tine mine of its kind in the world .
Novacyt S.A.—Sch1 from the international diagnostics group, generating revenues from the sale of clinical products used in oncology, microbiology, haematology and serology testing. Offer to raise £8.8m at 59.38p with a value of £22.4m. Expected 01 Nov.
Footasylum Ltd—UK-based fashion retailer focusing on the branded footwear and apparel markets announced its intention to seek admission to AIM. Expected value between £130m and £150m. Due Nov 2017.
Central Asia Metals (LON:CAML) -RTO of Lynx Resources. Anticipated market capitalisation at Admission: £404.8m. Raising £113m at 230p. Acquiring the SASA zinc-lead mine in Macedonia from Solway Industries. Due 15 Dec.
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.
Orogen plc, to be renamed Sosandar plc on Admission. Sosandar is an online womenswear brand specifically targeted at a generation of women who have graduated from younger online and high street brands, and are looking for affordable clothing with a premium, trend-led aesthetic. Offer to raise £5.3m with market cap of £16.1m, expected 2 November 2017
OG Graphite, brownfield development-stage graphite company focused on the reactivation of its wholly-owned Kearney natural flake graphite mine and mill located 280 km north of Toronto, Canada. Offer TBA, expected late October .
Main Market Premium Listing
Arqiva Group— UK's pre-eminent national provider of television and radio broadcast infrastructure and a leading independent provider of communications infrastructure services. Revenue was £943.8 million for the year ended 30 June 2017 . Adj EBITDA £467m. V Raising c. £1.5bn primarily to deleverage. Due in November.
Cabot Credit Management -one of the largest credit management services providers in Europe and the market leader in the UK and Ireland with total 120-Month ERC of £2.2 billion. Raising c.£195m. Offer TBA. Due November.
ContourGlobal LP— contracted wholesale power generation businesses, with 69 thermal and renewable power generation assets in Europe, Latin America and Africa. In the year ended 31 December 2016 it generated $905.2 million of combined revenue and $440.4 million of Adjusted EBITDA. Raising c.$400m. Expected November.
M7 Multi-Let REIT—Intends to raise up to £300m at 100p. Aims to acquire and hold a portfolio of UK regional light industrial and regional office assets diversified by geography, asset type and tenants that is expected to generate stable income returns and, where appropriate, offer the potential to leverage and enhance returns through active asset management initiatives. Due 13 Nov.
Bakkavor Group - Provider of fresh prepared food intends to float in November. FY 16 Revenue: £1,763.6 million FY 16 Adjusted EBITDA: £146.4 million (13.7% CAGR FY 14-FY 16). Part vendor sale and primary raise of c. £100m. Price TBA.
Russia’s En+, owned by Russian aluminium tycoon Oleg Deripaska, has assets in metals and energy, including hydropower. reported to be seeking dual London and Moscow listing raising $1.5bn
TMF Group , which provides tax, admin and legal support services, reported to be seeking London IPO to raise c. £200m.
Breakfast buffet
EU Supply (LON:EUSP) 14.75p £9.99m
“The e-procurement software provider, is pleased to announce that it has signed a number of small contracts and has completed a development project.
A number of small contracts have been signed by the Group and its partners with a Danish utility company, Port of Rotterdam Authority and 3 municipalities in Denmark (Tønder, Aabenraa and Haderslev). In addition, the Group has started work on a project for the Norwegian Ministry of Foreign Affairs. All of the above projects are for the delivery of CTMTM as SaaS and related services. Most of the revenues under these contracts will be accrued in 2018.
Finally, following submission of the EUREKA development project's final report to Vinnova, receipt by the Company of the final payment is expected to be received in 2017 as anticipated.” FYDec17E rev £4.4m and £0.16 pre-tax loss.
Malvern International (LON:MALV) 2.88p £3.06m
Agreement to purchase SAA Global Education Centre Pte. Ltd. for a total consideration of Singapore Dollars (SGD) $500,000 to be satisfied by the issue of 5,630,350 new ordinary shares of 5p each in Malvern. Completion of the Sale and Purchase Agreement is expected to take place on 7 November 2017. SAA-GE has been a subsidiary of ISCA (Institute of Singapore Chartered Accountants) that provided commercial private education. It has a 30 year history of providing diploma, undergraduate, postgraduate and professional programmes in the accountancy, finance and business related disciplines. For its financial year ended 31 December 2016, SAA-GE reported a loss of SGD$1.8m on revenues of SGD$5.7m. We could see no forecasts.
Hutchison China Medi (LON:HCM) 4190p £2.5bn
Announcement of pricing of the underwritten public offering previously announced by Chi-Med on October 24, 2017. Chi-Med will issue and sell 9,886,792 American Depositary Shares, each representing one-half of one ordinary share, at a price of $26.50 per ADS on the Nasdaq Global Select Market, raising gross proceeds of approximately $262m.
The net proceeds from the Offering are expected to be used to fund the on-going research and development of the Chi-Med Innovation Platform drug pipeline and for working capital and general corporate purposes.
FY Dec17E rev £180m and £41.5m loss.
HydroDec Group (LON:HYR) 1.6p £11.95m
Q3 trading update to Sep 30 from the cleantech industrial oil re-refining group. Strongest quarterly EBITDA performance in Group's history, with Group EBITDA expected to exceed $0.33m, representing an improvement of $0.61m on the comparable period last year (Q3 2016: loss of $0.27m), driven by improved pricing and margins and reductions in corporate costs
• Revenues expected to exceed $4.7m (Q3 2016: $4.3m)
“In the US business, the Company is pleased to confirm the award of a two year agreement to supply up to 7.6 million litres annually of its SUPERFINE transformer oil to a major transformer original equipment manufacturer ("OEM")” FYDec17E rev of £15.15m and EPS loss of 0.22p.
Advanced Medical Solutions Group (LON:AMS) 308.5p £654m
The surgical and advanced wound care specialist company, and Organogenesis Inc., a commercial leader in regenerative medicine focused on advanced wound care and surgical biologics, have entered into an out-licensing agreement on a U.S. patent for a collagen-based wound dressing containing Polyhexamethylene Biguanide. Under the terms of the agreement, Organogenesis has been granted an exclusive license in the United States to the Patent. In exchange for this, AMS will receive a minimum payment of $2.5m, which will be recognised in 2017, and a minimum royalty revenue of $1 million for each of the financial years ending 31 December 2018 and 2019, as part of an ongoing royalty that will be payable to AMS on the net sales of the Licensed Product for the life of the Patent. The Patent is due to expire in October 2026. FYDec17E rev £93.5, and £23.9m PBT.
CareTech Holdings (LON:CTH) 420.25p £317.4m
FY Trading update from the provider of specialist social care services. “The Board confirms that trading during the period was in line with market expectations. CareTech's care pathways continue to be a key foundation for delivering positive outcomes for our service users and in total we have added 248 beds in the year. During the year, a total of 161 beds in reconfigured and new services have been brought into service. These beds have a higher contribution than the beds pre-configuration and are part of an ongoing strategy to enhance fees and margins.” Occupancy levels in the mature estate remain strong at 93% (2016: 93%) and the blended occupancy remains approximately 86%. Annual fee rate negotiations with local authorities have again led to a positive outcome this year helped by the optimisation of the estate for more complex needs. FYSep17E rev £167.7m and £29m PBT Pe c.12x, yield c.2.3%.
Amerisur Resources (LON:AMER) 19.5p £236.5m
The oil and gas producer and explorer focused on South America updated on Platanillo-25, the third well drilled on Pad 2N, the northern extension of the Platanillo Field. Platanillo-25, the 20th well of the Platanillo drilling campaign, has been successfully side tracked to a total depth of 8,620 ft measured depth, on time and budget. Preliminary log interpretation, using Schlumberger logging-while-drilling tools, indicates the presence of a 22 ft net oil column in the U sand formation. The Company expects to initiate commercial production from the U sand, to be evacuated through the OBA pipeline, in approximately 10 days. FYDec17E rev £68m and £7.28m PBT.
Marlowe (LON:MRL) 362.5p £124.67m
“The support services group focused on acquiring and developing companies that provide critical asset maintenance services, announces that it has acquired dB Audio and Electronic Services ("dB"), a provider of fire protection services based in Tonbridge, Kent.
dB was founded in 1988 and provides a portfolio of fire protection services, including the installation, service and maintenance of fire detection systems.
dB is being purchased for a total enterprise value of £0.2m. For the 12 months ended 31 July 2017, dB generated revenues of £0.8m and profit before tax of £0.1m.”
FYMar18E rev £72.2m and PBT £5.24m.
Ashley House (LON:ASH) 7.12p £4.25m
“Ashley House is pleased to note the news that Theresa May stated in Prime Minister's Question Time yesterday that the Government is set to drop its plans announced two years ago to cap housing benefit in the supported living sector to Local Housing Allowance ("LHA") rates. These rates are substantially below the level of rent and service charge to make supported living schemes viable. This change should therefore enable the Company to unlock many schemes in its large Housing pipeline, predominantly in extra care.” FYApr18E rev £31.7m and £1.8m PBT. PE c.2x.
Mattioli Woods (LON:MTW) 821p £212m
AGM statement from the specialist wealth management and employee benefits business. "We have secured further strong revenue growth in the first four months of this financial year, with the bespoke investment services the Group has developed, comprising our Discretionary Portfolio Management service, Private Investors Club, Custodian REIT plc and the Mattioli Woods Structured Products Fund enjoying aggregate net inflows of over £100m, more than double the net inflows in the equivalent period last year.” “Strong growth in revenue in the year to date has translated into strong growth in EBITDA, with EBITDA margin for the first four months tracking ahead of target. Certain costs associated with marketing and IT development will be weighted towards the second half of the financial year and our profit outlook for the year is in line with management's expectations.” FYMay18E rev £55m and PBT £11.2m.