What’s cooking in the IPO kitchen?
AIM
City of London Group (COLG) - Sch 1—RTO of Milton Homes Limited, an equity release provider which has a UK residential property portfolio of 586 properties with a market value of approximately £77 million as at 30 June 2017. Offer TBA. Due 5 Oct
Springfield Properties—Scottish housebuilder. Intention to float. Offer TBA “Our turnover exceeded £100 million for the first time this year and now we employ around 500 people. This IPO is the next step in our growth.”
Warehouse REIT - The Company will invest in a diversified portfolio of UK warehouse assets located in urban areas. The Company is targeting a dividend yield of 5.5p equivalent to a yield of 5.5 percent. for the year ending 31 March 2019. Issue price 100p. Offer TBA. Due 20 Sep
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.
Main Market Premium Listing
People’s Investment Trust—Objective of sustainable wealth creation. Also to list on the Social Stock Exchange. Targeting £125m raise on 17 Oct. No performance fees or executive bonuses in order to focus on long term rather than short term performance.
Charter Court Financial Services Group—Intention to float. Specialist lender serving the UK residential mortgage market. The net mortgage loan book stood at £4.4 billion as at 30 June 2017 growing at a compound annual growth rate of 92 percent since 31 December 2014. Part vendor sale and £20m primary raise.
ContourGlobal LP—Report on Bloomberg that the thermal energy power generator is considering a London listing.
Hipgnosis Songs Fund investment Company offering pure-play exposure to Songs and associated musical intellectual property rights. Offer raising £200m at 100p. The Company has decided to extend the closing date for the Placing, Offer for Subscription and Intermediaries Offer to 1 August 2017. The Company may bring forward this closing date at any time. Admission 15 Sep.
Breakfast buffet
European Wealth Group (LON:EWG) 21p £20.89m
HYJun17 numbers from the growing wealth management group.
Group revenue for period up 19.0% to £5.2m (H1 2016: £4.4m).
·Core adjusted profit £0.1m (H1 2016: £0.02m)
·Investment management generated revenue of £3.1m (H1 2016: £2.7m)
·Repayment of convertible loan stock, via a short term bridging loan, until £9.3m capital raise in July 2017.
Continued strong growth in funds under management and administration (FUMA) which reached £1.7bn (£1.5bn at 31 December 2016, £1.4bn at 30 June 2016). First acquisition in Asia, increasing global reach of Group. “The next stage in the development of the Group is to turn our focus to building the business, which we intend to do by attracting additional revenue-generating advisers as well as investing both time and money into building a strong sales and marketing function for the Group. The first steps were taken during the period under review but our focus over the third and fourth quarter of 2017 will be to accelerate growth including by acquisition.”
Mercia Technologies (LON:MERC) 32p £106.4m
AGM Statement form the national investment group focused on the funding and scaling of innovative technology businesses with high growth potential from the UK regions.
"I am pleased to say that since our 31 March year end the Group's direct investment portfolio has continued to make good overall progress, with significant commercial milestones being achieved by a number of our investee companies and syndicated funding rounds, involving both new and existing co-investors, completed by Impression Technologies, nDreams, Oxford Genetics and Warwick Audio Technologies."
"Our focus remains on growing the net asset value of the Group's direct investments by utilising Mercia's differentiated model to create long term value for shareholders. We look forward to updating shareholders on further positive progress throughout the year."
DP Poland (LON:DPP) 42.5p £63.5m
FHYJun17 results from the exclusive developer, operator and sub franchiser of Domino’s Pizza in Poland.
·48 stores open to-date, 13 stores opened in 2017.
·37% increase in stores since 1 Jan 2017
·3 stores currently under construction
·On track to cross 50 store mark in October 2017
System Sales1 up 50% (PLN) 27m PLN H1 2017 (18m PLN H1 2016).
Revenue up 31% to £3.4m. EBITDA loss £725k from £765k. Cash in bank of £6.3,m. “We anticipate that Group EBITDA for 2017 will be a modest improvement on 2016 as we see the impact of new store openings and the additional fixed costs of the second commissary, dampening the impact of significantly higher sales. We expect to see a step change improvement in Group EBITDA in 2018 as more corporate stores mature, new stores become a smaller proportion of the whole and the contribution from our commissaries continues to grow.” FYDec17E rev £11m, £2m loss.
Hydrodec (LON:HYR) 1.72p £12.88m
“The clean-tech industrial oil re-refining group, is pleased to announce that it has been successful in its application for a new patent in respect of its transformer oil re-refining process. The granting of a new patent benefits the Group in ensuring that Hydrodec's technology continues to lead the field in this area for the foreseeable future. The successful application is expected to provide a marketing and operational advantage by extending the ability to claim patent protection over Hydrodec's process by a further 20 years from the patent priority date of 2014. The new patent covers a method for producing a higher quality non-corrosive product using a specific but incremental improvement to the original Hydrodec process. It has been granted in the US, which is the Group's largest and most important market, subject only to payment of the final fee. Applications in respect of other territories, including the EU, Australia and Japan, are on-going.” FYDec17E £15.85m and 0.23p loss per share.
redT energy (LON:RED) 7.63p £49.86m
The energy storage technology company, has signed partnership contracts including agreements with Central & Eastern European and South East Asian Distributors. Under these agreements, the partners plan to place redT energy storage machines into their existing qualified pipeline of in total, more than 300 units, whilst making an initial commitment for 12 redT units overall. The partners will also provide maintenance and after-sales care to customers in their respective regions. redT has also recently made two senior hires within the Sales and Research & Development divisions. Bengt Stahlschmidt (responsible for more than 16MWh of flow machine sales during his time at Austrian-based flow machine company Gildemeister) has joined as Global Business Development Lead, alongside Adam Whitehead who has joined as Research Principle. FYDec17E rev £11.3m and £7.5m loss.
Mytrah Energy (LON:MYT) 29.5p £48.27m
The India-based renewable focused Independent Power Producer, announced that Piramal Group has invested approximately USD 277 million (INR 18 billion) into Mytrah's Indian subsidiaries in the form of non-convertible debentures ("NCDs").
The NCDs have a 7-year tenor and are invested into Mytrah Energy (India) Private Limited (approximately USD 150 million, unlisted NCDs) and Mytrah Ujjwal Power Private Limited (approximately USD 127 million, NCDs listed on the BSE). The proceeds will be used to replace existing investments from IDFC Alternatives Limited, AION Capital, Merrill Lynch and Goldman Sachs, with part of the facility also providing growth capital to the Company. FYDec17E rev £316.6m and £0.3m loss.
GBGI (LON:GBGI) 163.5p £142.19m
Trading update (FYJun17) from the integrated provider of international benefits insurance. The Group saw continued commercial momentum in line with management expectations in the second half of the fiscal year across its diversified product and regional footprint. As previously announced, the Group continued to make further investments in its operations to support both sales efforts and outstanding service levels. The Group expects to announce its maiden dividend along with its full year results, in line with previous guidance given at the time of the IPO. Gross written premiums exceeded $200m for the full year, with second half GWP weighted towards the end of the period. Revenue for the fiscal year grew over 23% yoy. The global strategic partnership GBGI announced with AXA has started well. Trading performance since the start of the new fiscal year has been solid and in line with management expectations. FYJun18E rev £170.3m and £17.37m PBT. PE c. 9x. Yield c. 7%.
Eland Oil & Gas (LON:ELA) 54.5p £119.99m
The “oil & gas production and development company operating in West Africa with an initial focus on Nigeria, is pleased to confirm that the OES Teamwork Rig has been at the Opuama-7 wellsite for the past week. The drilling team has since completed all preparatory work and the rig has now commenced operations for the Opuama-7 sidetrack well. The operation remains on track to complete the well in October.
In addition, Elcrest Exploration and Production Nigeria Ltd ("Elcrest"), has completed its August lifting of 153,000 barrels of crude from Forcados Terminal. An average price of $51.44/ bbl was achieved with $7.9m in revenues with the cash received last week.
Elcrest is expecting to complete a further lifting of 170,000 barrels from Forcados by early October 2017. “
FYJun17E rev £54.3,m and PBT £5.24m.