“We have an excellent shareholder base. Moving forward, the key is to find the right projects at the right prices."
Non-executive director Sanjay Nath
Cash shell GS Chain PLC made what can best be described as a low-key debut on London’s main market on Friday – but there's plenty of excitement in prospect.
Established to make acquisitions, management will primarily be looking at companies using disruptive technologies, said chief executive Alan Austin.
“While the technology itself is industry agnostic, our focus is going to be primarily around the automotive sector, the fintech and financial sectors and real estate,” he added.
Ambitious
Ambitious, the team is looking at potential reverse takeover (RTO) transactions in the order of £60mln to £150mln.
“There are some considerations on the table right now, we are continuing to do due diligence on those companies to make an accurate assessment of whether they are a good fit,” said Sanjay Nath, a GSC non-executive director.
He added that it could take three to six months before the group is in a position to announce its first deal.
For a cash shell, the company has amassed quite an array of talent.
Talent
CEO Austin has a blue-chip background in senior roles at Coca-Cola, UnitedHealth Group and, most recently, as vice president of operations with the Assurant (NYSE:AIZ), the risk management group.
Chief operating officer Sébastien Guerin brings with him a deep knowledge of digital marketing and blockchain technology, while GSC’s chairman, Leon Filipovic, has a background in corporate finance.
So, Filipovic will be key to the company’s fundraising efforts as will non-exec Nath, a retail and sports entrepreneur.
“The bottom line is that these four gentlemen have the ability to do some very nice deals over the next year,” said a source close to the GSC float.
A pre-IPO fundraiser, which brought in just over £1mln, means the company has enough money to meet its immediate needs.
Opportunity
It will, however, look to raise between £8mln and £12mln at some later juncture.
“This is so any potential RTO can see that the company already has a decent slug of cash, and doesn't have to go out and raise it,” said Nath.
Looking beyond the London IPO, the group is planning to list the business in Frankfurt and the US.
“Having a dual or a triple listing will only make it easier for the shareholder base to come in and support the company when we make acquisitions,” said Nath.
In the States, it is likely to start on the OTC before graduating to the Nasdaq or AMEX as it grows, which would provide significant pools of additional growth capital.
“We have an excellent shareholder base. Moving forward, the key is to find the right projects at the right prices,” said Nath.