CM-CIC's Kerlink reaps €10.2m through IPO

The French startup raised an estimated €10.2m with a share price of €10.43, simultaneously paying off convertible bonds worth €2.55m, representing 244,488 shares.

The placement was subscribed 1.2x times, with a total of 1,023,612 shares placed. The vast majority (891,610) were subscribed by institutional investors, and 132,002 by individual investors.

The extension clause, amounting to 116,000 shares, was exercised almost fully. Kerlink agreed to an overallotment option of 45,543 extra shares – equivalent to €475,000 – with Louis Capital Markets UK, which can be exercised until 17 June.

The success of Kerlink's IPO resulted in a €37.1m market capitalisation. The company will use the sale proceeds for the launch of new equipment and services, and the extension of its services internationally, particularly to countries with greater exposure to Internet of Things (IoT) technology.

Previous funding
In May 2008, Bretagne Jeunes Enterprises along with Sodero Management and other investors provided growth stage financing worth €650,000. In May 2013, CM-CIC Capital Innovation and Sudinnova provided a €1.5m second round of funding to Kerlink, allowing the company to acquire additional commercial and industrial resources.

Company
Established in 2004, Kerlink is a manufacturer of machine-to-machine communication systems. Headquartered in Rennes, the company distributes its products through partner companies, wholesalers and distributors.

Its official turnover for 2015 was €7.4m – up from €3.6m in 2014 – 20% of which came from international operations. Since 2012, the company claims to have recorded an annual growth rate in excess of 40%. Kerlink opened a subsidiary in Singapore in late 2015 and expects to turn its focus onto the US next.

Around 30% of Kerlink's budget is currently dedicated to R&D. Market sources predict a potential €100m turnover for Kerlink by 2022, half of which would be made internationally. 

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