Tekmar Ready to Trade on London Stock Exchange with GBP 61.8 Million

Business & Finance

UK-based provider of subsea technology and services to the offshore wind and oil & gas industries, Tekmar Group, will start trading on the AIM market of the London Stock Exchange on 20 June and plans to use the placing proceeds to acquire Tekmar Limited, repay debt within the Group and provide some GBP 10 million to fund future expansion and acquisitions.

Image: Tekmar

The company announced its intention to float on the London Stock Exchange on 4 June, and informed on 15 June that it had priced its initial public offer (IPO) with institutional investors to raise gross proceeds of approximately £61.8 million through a conditional placing of 47,536,789 shares at a price of GBP 1.30 per share.

On admission on the AIM share market, Tekmar will have 50,000,000 shares in issue with an expected market capitalisation of approx. GBP 65 million.

James Ritchie, Chief Executive Officer of Tekmar, said: “Being a quoted company will, we believe, allow us to execute our strategy, to become the partner of choice for the supply of subsea protection equipment to the global offshore energy markets, whilst retaining our independence with customers and suppliers.”

“Importantly, our strengthened balance sheet post admission to trading on AIM will allow us to invest more readily in the Group’s expansion going forward. We also believe that admission to AIM will enhance our profile and brand recognition amongst potential clients and assist in the recruitment, retention and incentivisation of senior management and employees at all levels,” Ritchie said.

Tekmar’s two primary markets are offshore wind, where it provides subsea protection for power transmission cables from and between offshore wind turbines, and oil & gas, to which it provides subsea protection for umbilicals and flexible pipes.