Northstar's Applied Graphene raises £11m in IPO

Ellie Pullen
20 November 2013

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Northstar Ventures-backed Applied Graphene Materials (AGM) has raised ТЃ11m in its flotation on the AIM, giving the company a market cap of ТЃ26.2m.

Shares started trading at 8am (GMT) this morning. The firm offered 7.1 million ordinary shares at a price of £1.55 per unit in its IPO. Of the £11m raised, net proceeds going to AGM will amount to approximately £9.9m.

AGM is backed by the £15m North East Proof of Concept Fund (POCF), which is managed by Northstar Ventures, and the £25m North East Technology Fund (NETF), managed by IP Group.

POCF holds a 10.4% stake in AGM, worth £2.73m at the company's initial trading price, while NETF owns 14.5% of AGM's shareholding, worth £3.78m. IP Group, the fund manager for NETF, also holds a direct 20.4% stake in AGM.

POCF and NETF committed £350,000 and £480,000 to the placing respectively, while IP Group committed £2m.

N+1 Singer was appointed as nominated adviser and broker for AGM. The company now trades on the AIM under the ticker symbol "AGM". At the time of writing, shares were trading at around £2.05 apiece.

Previous funding
Alongside IP Group, the two funds invested £1.2m in AGM in February last year. POCF committed £200,000 to the company, while NETF and IP Group split the remainder evenly.

Company
AGM span out of Durham University in 2010 and is now based in Teesside. The company has developed a process for the production of high-purity graphene nanoplatelets based on the use of sustainable raw materials. This means AGM does not have to rely on the supply of graphite for its graphene production process.

Graphene, which was isolated in 2004 by scientists at Manchester University, is a crystalline form of carbon. Due to its strength and light weight, as well as its conductive properties for electricity and heat, the material is currently being tested for various potential applications such as durable display screens, integrated circuits and solar cells.

The company's ultimate goal is to become a supplier of graphene-based speciality chemical products catering to businesses that are manufacturing products containing graphene.

People
Jon Mabbitt is the CEO of AGM.