Tekmar raises GBP 61.8m as part of London float

Photo by: Tekmar Energy (www.tekmar.co.uk).

June 15 (Renewables Now) - UK-based provider of subsea cable protection systems Tekmar Group Plc has conditionally raised GBP 61.8 million (USD 81.9m/EUR 70.7m) ahead of joining the AIM market of the London Stock Exchange next week.

The company, which supplies the offshore wind as well as oil and gas markets, said today it has priced its initial public offering (IPO) and conditional placing with institutional investors to raise GBP 61.8 million in gross proceeds.

The issue price is GBP 1.30 per share and the company will allocated about 47.5 million shares under the placing. The shares are expected to start trading under the ticker TGP on June 20. On admission to AIM, the company will have 50 million shares in issue and expected market capitalisation of about GBP 65 million. Its management will hold a stake of 4.9%.

Tekmar, currently owned by Elysian Capital, announced plans for the IPO earlier this month.

The placing proceeds will be used to acquire Tekmar Ltd, to repay debt and to provide some GBP 10 million, before costs, for future expansion and acquisitions.

Chief executive James Ritchie said that the IPO has seen "a very positive response" and has been well supported by institutional investors.

"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," Ritchie said. The CEO also noted that the listing will enhance the company's profile and brand recognition amongst potential clients and employees.  

(GBP 1 = USD 1.325/EUR 1.143)   

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Plamena has been a UK-focused reporter for many years. As part of the Renewables Now team she is taking a keen interest in policy moves.

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