What’s cooking in the IPO kitchen?
NEX Exchange
Clean Invest Africa—Introduction due around 14 Nov. Vehicle established to identify investment opportunities and acquisitions in renewable and clean energy projects/companies or alternative technologies that are used in a socially and environmentally responsible way that will aid the development of the African continent.
AIM
City Pub Group - owner and operator of an estate of 34 premium pubs across Southern England. £30m raise. Consistent track record of strong revenue and EBITDA growth, with a three year CAGR from FY14 to FY16 of 34.9% and 44.8% respectively, and an EBITDA margin of 14.7% in FY16. Due Nov.
Boku - Independent direct carrier billing company. Revenues were up 21% to US$10.2 in HYJun17. Q32017, revenues grew to US$6.5m, up by 44%. The Company also saw continued growth across all of its key metrics: user numbers, total payment and a positive adjusted EBITDA for the month of September 2017. Due 20 Nov. Offer TBA.
Ten Lifestyle Hldgs. Technology-enabled lifestyle and travel platform providing trusted concierge services to the world's wealthy. Net revenue increased from £20m in the year ended 31 August 2015 to £33m in the year ended 31 August 2017, a compound annual growth rate of 29%. Offer and date TBA.
AfriTin Mining—Demerger from Bushveld Minerals (BMN.L). Offer TBA. Due 8 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. Expected 8 November 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.
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 mid November.
Main Market Standard Listing
Shefa Yamin minerals company focused on the exploration for precious stones in Northern Israel. Net Proceeds will be used to advance the Company's mining project. Offer TBA.
Main Market Premium Listing
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 £2.2bn. 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 $905.2m of combined revenue and $440.4m 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.
En+, international vertically integrated aluminium and power producer with core assets located in Russia. Priced at $14 per GDR. $1.5bn offer of which $0.5bn primary to pay down debt. Dual listing in Moscow. Unconditional dealings 8 Nov.
TMF Group , which provides tax, admin and legal support services, reported to be seeking London IPO to raise c. £200m.
Breakfast buffet
Satellite Solutions Worldwide Group (LON:SSW) 7.5p £51.2m
The specialist in the delivery of alternative super-fast broadband services, today announces that it has completed three acquisitions; two fixed wireless broadband ISP's and a satellite broadband customer base. Total consideration is £1.8 million. The three acquisitions together deliver over 4,000 new customers at an average ARPU similar to the existing SSW customer base and generated combined historical revenue of £1.67m and historical EBITDA of £0.27m. All three acquisitions are immediately earnings enhancing and the profitability of these businesses is expected to improve under SSW ownership due to better operational gearing and economies of scale. FYNov17 rev £41.5m and £0.2m PBT.
B.P. Marsh and Partners (LON:BPM) 245p £71.5m
“The niche venture capital provider to early stage financial services businesses, is pleased to inform the market that, further to the Company's announcement of 19 June 2017, XPT Group LLC ("XPT"), in which the Group owns a 35% shareholding, has acquired Western Security Surplus Insurance Brokers, Inc. ("WSS"), the Wholesale Broker and Managing General Agency. This is the first acquisition made by XPT, as part of its plan to develop a wholesale insurance broking and underwriting agency platform across the U.S. Specialty Insurance Sector. The Group invested in XPT in June 2017 with the provision of $6m of equity funding, alongside XPT Management Team Partners.” This acquisition demonstrates XPT's ability to take advantage of the significant consolidation opportunities in the small-to-medium-sized wholesale space in the U.S.”
Landore Resources (LON:LND) 1.9p £15.8m
Review on the recent combination of the Junior Lake and Lamaune properties, Ontario, Canada. Landore's acquisition of the contiguous Lamaune property (90.2% owned by Landore Canada) has increased the size of the Junior Lake property from 22,497 hectares to 26,593 hectares, extending the coverage of the highly prospective Archean greenstone belt, traversing the property from east to west, and from 19 kilometres to approximately 31 kilometres in length. New technical report underway will comprise resource upgrades including: The BAM East Gold Deposit: February 2017 Mineral Resource Estimate of 301,000 ounces gold plus upgrade to include 11,060 metres of additional drilling in 2017. Also includes the B4-7 Nickel-Copper-Cobalt-Platinum-Palladium Deposit VW Nickel-Copper-Cobalt Deposit.
Purplebricks (LON:PURP) 390p £1.1bn
“Purplebricks Group plc the leading hybrid estate agency, confirms that following the closing of the first half of the financial year, it remains on course to meet the board's expectations for the full year.
The Group's Interim Results will be released on 13th December.”
FY APR 2018E rev £97.36m and PBT loss of £11.54m.
SysGroup (LON:SYS)31.5 p £7.3m
HYSep17 update from the managed IT services and cloud hosting provider. the Board has focused on executing the continued transformation of the business to managed IT services and cloud hosting due to its belief that Managed Services offers the highest growth opportunity and the potential for increased margins and longer-term contracts providing greater revenue visibility. This shift in focus has had a consequential impact on revenue, as revenues generated for Managed Serviced contracts are recognised over the duration of the contract, rather than upfront. The Group has delivered revenues of £3.92m (H1 FY 2017: £2.68m) and Adjusted EBITDA of £0.14m (H1 FY 2017: £0.23m.) Expects H2 weighting but underlying profitability for FYMar18 to be significantly below market expectations. We could see no forecasts.
Ortac Resources (LON:OTC) 2.88p £6.72m
Binding agreement to acquire an additional 33.82% of the issued share capital of Casa Mining Ltd for 38.3m shares and will be making an offer for the balance of the issued share capital of Casa. Ortac has also agreed, subject to closing of the Acquisition and simultaneous with closing of the Acquisition, to convert the $2m convertible loan note previously issued to the Company by Casa at an amended reduced share conversion price of $0.5586. The Board believes the acquisition of Casa presents a valuable near term opportunity for Ortac and its shareholders with recent drilling results indicating a potential gold resource in excess of 2 million ounces.
Versarien (LON:VRS) 19.12p £25.15m
Completed £2.9m fundraising at 18p. The Company will use the proceeds of the Fundraising to purchase capital equipment and provide working capital to enable the various existing and prospective graphene related collaborations with global OEMs to be progressed. The intended capital equipment purchases are designed to enable the Company to increase the production capacity of its proprietary Nanene few layer graphene nano-platelets by a factor of approximately ten. We could see no forecasts.
Redx Pharma (LON:REDX) SUSPENDED
The drug discovery and development company, announced that it had successfully exited Administration as a going concern. Trading in the Company's ordinary shares on AIM will recommence today at 12pm. Opening balance sheet has £13.6m cash, coupled with a reduced cost base, provides a cash runway into early 2019. “The strong research base has yielded a pipeline that is now focused on developing first or best in class drugs to validated targets in cancer and fibrosis where there remain significant unmet medical needs. We look forward to entering the clinic with our lead cancer compound in the first quarter of 2018 having recently received the necessary approvals for our trial design.”
Belvoir Lettings (BLV.L)107.5 p £37.56m
“The UK's largest property franchise, is delighted to announce that Belvoir was crowned Franchise/ Network of the Year at the Negotiator Awards 2017. Established in 2008, The Negotiator Awards is recognised as a prestigious awards ceremony for the UK residential estate and letting agency industry. The Awards are judged by leaders and experts in the residential property industry, with the panel comprising of individuals in property journalism, communications, surveying, and leading property industry senior management. One of a portfolio of four brands operated by Belvoir Lettings plc, Belvoir continues to leverage its network expertise to support franchisee growth, with its Central Office team on hand to provide support and guidance to franchisees, who are also able to benefit from financial support from the Group's via its assisted acquisition programme.”
AFH Financial Group (AFH.L) 257.5p £74.48m
FYOct17 update from the financial planning led wealth management firm. Revenues for the year expected to exceed £33m, up 35%, driven by integration of acquisitions made during the year and higher average levels of revenue generated by advisers. Continued expansion of EBITDA margin, reflecting operational gearing. Funds under Management exceeding £2.7bn (2016: £2bn), driven by double digit growth in monies invested by existing and new clients. Prior and current year acquisitions successfully integrated and deferred earn outs continue to be paid at over 90% of target. AFH is well positioned to continue to take advantage of ongoing IFA market consolidation
• Strong pipeline of potential acquisitions currently under negotiation
• Cash balances at 31 October 2017 of £8m. FY Oct18E rev £40.2m and £8.29m PBT.