Ashtead Technology enjoyed a solid debut on the London Stock Exchange’s AIM market Tuesday.
The Aberdeenshire-based subsea equipment company is the fifth in Scotland to have listed on the junior market, which Mike Timmins, EY’s strategy and transaction partner has said is “great news” for corporate ambitions north of the border.
Ashtead joins meal delivery service Parsley Box, battery maker AMTE Power and Artisanal Spirits, owner of the Scotch Malt Whisky Society – and another, Calnex, which listed at the end of last year – among the Scottish companies raise funds on the London markets in the last 12 months.
However, while the number is high for Scotland, demand for initial public offerings (IPOs) has been far higher in other areas of the UK with the likes of Made.com and Victoria Plumbing, which achieved the largest IPO on AIM with a £1bn IPO in June.
This is despite private investment markets – mainly in the form if private equity, venture capital and high net worth investors – offering steep competition, as cash pent up during the pandemic looks for a home.
Mr Timmins said: “It is more than the norm here in the last 12 months but if you compare it to Manchester and North West or the Midlands or London it’s just on a different scale.
“We are underweight in listed businesses – probably more so on the main market.
“There’s not that many. Every so often an Aggreko gets taken over and it makes a big difference. It doesn’t take much to disrupt the Scottish list because it’s not enormous to start with.
“I would say this but I would love to see more companies go down that route because if you get it right it’s a brilliant platform.”
Allan Pirie, chief executive, of Ashtead has a 2.7% in the newly-listed company.
He said: “Today marks another exciting milestone in the evolution of Ashtead Technology.
“As a newly listed company, we plan to continue to grow and strengthen our core business in subsea technology rental and solutions both organically and through acquisition further broadening our range of complementary equipment and services and expanding our geographic presence.
“”We are delighted to welcome our new shareholders and look forward to serving them as we continue to execute our growth strategy.”
The company said it had agreed a placing of 31,832,800 ordinary shares at 162p per share.
Last night the company’s shares closed at the same level – 162p, having hit a high of 170p during the day.
The current owners – London-based investment firm Buckthorn Partners and financial institution the Arab Petroleum Investments Corporation (Apicorp)– remain significant shareholders.
Shareholders pocketed more than £36million through the public offering, with gross proceeds to the company of £15million.
The firm said its global base, which takes in nine regional hubs across North America, the Middle and Far East, meant it would target both “structural high growth” in the offshore wind market alongside its more traditional business of operating inspection, maintenance and repair (IMR) services and decommissioning activities in the oil and gas sector.