Interactive Investor

Interesting trio bid to IPO on AIM

2nd February 2015 15:04

Lee Wild from interactive investor

A number of big floats have been announced already this year. Infrastructure investment business John Laing, ticket-seller Trainline and tool rental company HSS Hire have all spelled out their listing credentials and firmed up plans to IPO. But there’'s a flood of interesting companies targeting a spot on AIM before the window slams shut ahead of the general election on 7 May, among them is a trio who just hours ago nailed their colours to the mast.

Motif Bio is a clinical stage biopharmaceutical company which is developing novel antibiotics designed to be effective against serious and life-threatening infections caused by multi-drug resistant bacteria. It’'s been at it since the end of 2013, and its lead antibiotic candidate, iclaprim, is currently in clinical development.

But management don'’t anticipate commercialisation for about three years, so need the £4 million from this float to confirm with the FDA and the EMA in the first half of 2015 that the clinical development plan for iclaprim meets regulatory guidelines and that two Phase III trials can be conducted as proposed. It will also provide working capital for at least 18 months.

Talks are already underway with academic institutions and drug companies to build a portfolio of antibiotic candidates through licensing. Motif also has MTF-001, a preclinical stage programme to design a best-in-class dihydrofolate reductase inhibitor (DHFRi).

At the end of 2013, Amphion Innovations owned 32% of Motif.

There’'s also a company called Bilby, set up to invest in the gas heating and general building services industries. It’'s a way to the market for social housing repairs business P&R Installation Company Limited (P&R), still run by Phil Copolo who started the business in 1977. He wants to raise £2 million of new money from the listing and up to £4.5 million for himself and other shareholders who'’ll be cashing in some of their stakes.

There'’ll be something for new investors though. Bosses promise a dividend yield of not less than 3.5% at the placing price, and for the first payment to be for the half-year to 30 September 2015.

"Admission to AIM will position Bilby to exploit a fast-expanding market that is driven by strict Government regulations,"” says Copolo. Expect dealings to begin on 17 February.

Last of the trio is Aquatic Foods Group, a Chinese marine foods and seafood processor. It is raising £9.3 million to buy more machinery and other facilities, and to expand a chain of stores which will exclusively sell its product range.

Its numbers are certainly impressive. Between 2011 and 2013, turnover increased from RMB 276.4 million to RMB 667.3 million and net profit from RMB 38.2 million to RMB 118.6 million, representing a compound annual growth rate (CAGR) of 55% and 76% respectively.

The shares are due to list tomorrow (3 February) and value the business at £79.3 million. This one, however, will be interesting as liquidity has been a problem with past floats here by Chinese firms. Poor share price performance by other UK-listed Chinese businesses has also made UK investors wary.

Elsewhere, there have been encouraging signs. Integrated Diagnostics said last week that demand had been so strong, especially among local Egyptian investors, that it was delaying its listing on London'’s main market in order to float in Egypt, too.

And wine lovers should look out for Domaine Chanzy. If the Burgundy vineyard gets its float away it will be the only French company listed on AIM and the only French wine specialist listed in London.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

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