Argentex today announces its intention to apply for admission to the AIM market of the London Stock Exchange. The Company has conditionally raised £14.0 million (before expenses) at 106 pence per Ordinary Share by way of an institutional placing of 12,655,660 new Ordinary Shares and a subscription of 551,887 new Ordinary Shares. In addition, 30,625,065 existing Ordinary Shares are being sold by the Selling Shareholders pursuant to the Placing. Admission is expected to occur at 8.00 a.m. on 25 June 2019 with the Company having a market capitalisation at the Issue Price of £120 million.
- The Issue Price has been set at 106 pence per Ordinary Share, resulting in a market capitalisation of £120 million on Admission. The Placing and the Subscription comprises 13,207,547 new Ordinary Shares, representing approximately 11.7 per cent. of the issued share capital of the Company on Admission.
- The Placing and the Subscription is expected to raise net proceeds of £12.5 million for the Company. It is intended that c.£10.5 million of the net proceeds will be used to increase the trading capacity of The Company. The additional c.£2 million will be used to pay down borrowings.
- Following the Placing and the Subscription and upon Admission, c.43.7 per cent. of the Ordinary Shares will be held in public hands.
- The Directors believe that listing benefits the reputation of the Group and enhances its growth prospects by significantly increasing its permanent capital base. The primary proceeds of the IPO will principally be used to increase the Company’s capital base to enable it to meet the growing demand for its services by increasing trading capacity and therefore drive revenue growth.
- Numis is acting as Nomad, Broker and Bookrunner to the Company and Kinmont is acting as Financial Adviser.
Carl Jani, Co-CEO and Founder of Argentex said:
“Today is an important milestone for Argentex, marking the start of the next phase of our ambitious growth strategy. The positive reception we have received from investors has been hugely encouraging and serves as an endorsement of the financial and operational strength of the business and our differentiated client proposition. We have a proven strategy in place to continue to address underserved parts of the FX market and with a stronger balance sheet going forwards, I look forward to the significant long-term growth opportunities that lie ahead of us.”
Harry Adams Co-CEO and Founder of Argentex added:
“The IPO will help us build on our unbroken track record of delivering profitable growth by supporting increased trading capacity, enabling us to meet the growing demand for our services. Our differentiated offering centres around an exceptional and growing team, bespoke product suite and technology platform. We are excited about our future as a listed company delivering our leading FX services and advice to our clients, while generating returns to investors.”