(Alliance News) - Shares in Saietta Group PLC climbed 5.0% as they started trading on the AIM market in London on Wednesday.
The Oxfordshire-based maker of electric motors had raised GBP37.5 million in its initial public offering. Saietta issued 29.3 million shares and sold 1.9 million existing shares at an IPO price of 120 pence each in a placing run by Canaccord Genuity Ltd as nominated advisor, sole bookrunner and sole broker. The stock was quoted at 126.7p on Wednesday afternoon.
At the IPO price, Saietta had a market capitalisation of GBP102.1 million.
Saietta makes motors for electric vehicles mainly in the 'L Category', meaning two-wheelers such as scooters and motorbikes and small four-wheeled vehicles such as tuk tuks and last-mile delivery vehicles. It expects to qualify for the London Stock Exchange's Green Economy Mark.
The company booked a loss before interest and tax of GBP7.3 million on revenue of GBP870,966 in the financial year that ended March 31, amid early commercialisation of its motor technology.
Initially, Saietta has developed its AFT electric vehicle motor for the Asian light motorbike market. It said its AFT 150 variant is optimised for start-stop urban journeys in hot climates.
"We believe we are uniquely positioned to disrupt the Asian light motorbike market which is expected to increase to about 100 million by 2030, 40% of which are forecast to be electric," Chief Executive Vic Kist said on Wednesday. "We are aiming to capture a material proportion of the growing motorbike market within five years."
Saietta earlier had said it will use the IPO funds to expand its UK-based production capacity to 100,000 units per year within three years.
By Tom Waite; thomaslwaite@alliancenews.com
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