Joining the LSE Standard List by the end of the month is Georgina Energy PLC, which will provide investors exposure to the supply-constrained helium sector.
While access to the inert gas is becoming limited, demand is growing and there is no direct substitute. The MRI scanners sector is the biggest consumer (30%), while it is also used for weather balloons.
This imbalance was most evident at the last helium auction (yes, that is a thing) with prices rising 135%.
Georgina is acquiring the EP127 licence in the Northern Territory, Australia, which has significant helium potential.
It is raising up to £10mln, and has already secured over £2mln with strong expressions of interest for the balance, according to Proactive Research’s Ed Stacey, in his initiation note on the company.
“We believe that Georgina Energy offers investors a unique opportunity to gain exposure to the helium supply squeeze,” he added.
“The business plan offers strong profitability, modest capital requirement, and a fast transition to positive cashflow.
“We argue that investors who enter at the IPO stage stand to benefit from substantial valuation upside if commercial volumes of helium are confirmed.”