News Column

Allied Minds, FDM Group And Zibao Metals Join TSB On London Market

June 20, 2014

Samuel Agini

LONDON (Alliance News) - While overshadowed by TSB Banking Group PLC, a three other initial public offerings also came to market Friday and received a generally positive market response.

Allied Minds PLC, a US-focused science and technology development and commercialisation company, priced its initial public offering at 190.00 pence a share, giving it an initial market capitalisation about GBP398.0 million. The shares were quoted firm at 190.50p in conditional dealings on the London main market Friday morning.

Meanwhile professional services FDM Group (Holdings) PLC and recyclable metal trader Zibao Metals Recycling Holdings PLC also began trading Friday on the London Stock Exchange. FDM was quoted at 320 pence on the main market, 11% ahead of its 287 pence IPO price, while Zibao Metals was untraded on AIM.

TSB, the high-street bank floated by Lloyds Banking Group PLC, was quoted at 293.08 pence, up 13% on its 260 pence pricing.

In a statement, Allied Minds said that it expects to raise GBP76.2 million net from its IPO. In May, it said it intended to raise GBP83.0 million in gross proceeds. It sold 44.3 million new shares under the offer, while existing shareholders sold 17.4 million. According to Allied Minds, Invesco is expected to have a 42.88% stake following admission to trading.

Unconditional dealings are expected to begin Wednesday next week. The stabilising manager, Jefferies International Ltd, which is also the sponsor and bookrunner of the offer, is able to sell a further 6.6 million shares, some 15% of the new shares that were on offer, under an over-allotment option. Upon admission, the company will have 209.5 million shares in issue.

"With our extensive partner network, our innovative screening and evaluation process, and our disciplined approach to allocating capital and resources to our businesses, Allied Minds has successfully built a diversified portfolio of 18 businesses and a portfolio of promising intellectual property assets. The funds raised at IPO will enhance and accelerate our ability to commercialise innovative science and technologies from U.S. universities and government research institutions," Chief Executive Chris Silva said in a statement.

FDM had priced its IPO on Tuesday in a move to raise GBP8.0 million for the company and GBP234.7 million for shareholders including Inflexion Private Equity and senior management. Investec Bank PLC is the sponsor, financial adviser, sole bookrunner and broker for the offer.

Zibao, which sources non-ferrous metals from a global panel of suppliers and sells to customers in China, said that it raised GBP1.3 million gross, or GBP700,000 net, in its IPO, giving it a market capitalisation of GBP7.8 million. It issued 97.3 million shares at GBP0.08 each. Its nominated advisor and joint broker is ZAI Corporate Finance Ltd.

In the three years to March 2013, Zibao's sales have increased more than threefold to HKD436 million from HKD135.9 million in 2011, while profits more than quadrupled to HKD14.7 million, from HKD3.2 million.

"With the growth potential for our business proven, we see our listing on AIM as a springboard to raise our profile overseas providing greater access to European suppliers and speed our growth plans. The money raised will enable us to expand our overseas supplier network, principally through the acquisition or establishment of recycling yards, and also help us to pursue possible acquisitions with China," Chairman Wenjie 'Joe' Zhou, its founder and main shareholder, said in a statement.

In other IPO news, easyHotel PLC, one of the portfolio of companies owned by billionaire entrepreneur Stelios Haji-Ioannou, said it expects its shares to be admitted to trading on AIM on Friday next week.

EasyHotel is one of a number of other companies in Stelios' easyGroup. Others include easyCar, easyGym, easyProperty and easyPizza.

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Source: Alliance News

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