Strip Tinning Holdings PLC (AIM:STG), a supplier of specialist connectors to the automotive sector, started trading on the AIM market of the London Stock Exchange on Wednesday following an initial public offering (IPO) that raised £11.5mln.
The company placed new and existing shares at 185 pence each, raising £8.0mln for itself and £3.5mln for selling shareholders.
The placing price gives the company a market capitalisation of £28mln.
The free float is 40.8%.
The listing will enable the company to “accelerate its growth plans and underpin its early mover advantage in the electric vehicle (EV) battery sector, further enhance its profile in the markets in which it operates and assist with attracting, retaining and incentivising high calibre employees via participation in the company's share incentive plan”, Strip Tinning said in a statement.
The proceeds from the placing will principally be invested in developing the EV product market opportunity.
“The EV market is seeing high levels of growth and the directors believe that this presents significant further opportunities for the group,” it said.
Commenting on the listing, CEO Richard Barton said: "The business continues to go from strength to strength and has come a long way since being founded in 1957, plating wires and coils for general engineering applications in the local Birmingham area.
“We are now a leading supplier of specialist connectors to the automotive sector, having established long-term customer relationships with some of the automotive industry's most familiar names. Today's admission provides us with the resources to further enhance our capabilities and continue on our exciting journey.”
Singer Capital Markets Securities acted as sole bookrunner and placing agent and Singer Capital Markets Advisory LLP has been retained as nominated adviser and broker, the company said.
Strip Tinning shares were trading at 182.50p midmorning, having risen as high as 197.50p earlier.