Cleantech Market Comment

Thanks to our deeply-embedded industry and City contacts, Abchurch has remained active in significant AIM transactions throughout 2008 and, although mindful of current conditions, we would challenge the widely held misconception that the market is currently closed for business, in particular the Cleantech sector.

We would argue that VPhase (the company profiled below) is a prime example of a company that has used the Alternative Investment Market as it was intended; reversing into the AIM shell, Flightstore plc, in September 2007 at a market cap. of approximately £15 million. Little more than 6 months later, in May 2008, the Company leveraged that ‘paper’ to raise £3.5m at a market cap. of £59 million.

Nviro Cleantech, a developer of and investor in environmental technologies including clean coal pre-treatment, is another such example. It listed on AIM in August 2007, raising £7.5 million and, in a placing this June, raised a further £10 million.

Perhaps the strongest indication that AIM is still open for business, albeit with a tighter sector focus (particularly on primary resources and clean energy plays), was this summer’s £101 million AIM IPO of KSK Emerging India Energy Fund (KEF).

Whilst Abchurch is proud to have advised KEF on the largest AIM float of the year to date, we remain realistic about the wider market and are working with a growing pipeline of potential AIM candidates, preparing their communications strategy and toolkit so that they are ready to push ‘go’ the minute that the window re-opens on the broader IPO landscape.

If you would like to discuss your company’s public ambitions with Abchurch, please contact:

Justin Heath
Tel +44 20 7398 7781
justin.heath@abchurch-group.com