Independent investment bank Zeus Capital has supported two major IPOs in consecutive days on the London Stock Exchange’s Alternative Investment Market (AIM).
Global Yachting Group (GYG) was admitted to the market this morning, with asset management firm Tatton Asset Management scheduled to join AIM tomorrow. Zeus Capital acted as nominated adviser (NOMAD) and sole broker on both transactions.
GYG is a global, market-leading painting, supply and maintenance company, operating exclusively with superyacht owners and suppliers for boats in excess of 40m in length.
The business, headquartered in Palma, Mallorca, employs 472 people within its operations throughout the United States, Mediterranean and Northern Europe. GYG specialises in refits and new builds and its clients include 25 of the largest 50 superyachts across the globe.
The deal sees the company raise GBP28.4 million, with a market cap on admission of GBP46.6 million. The funds raised included GBP6.9m for the company, which will be used to strengthen the balance sheet through the repayment of existing debt, to support potential acquisitions, manage increased and larger-scale orders and to raise the group’s profile in new and existing markets. GYG is well positioned for future expansion, particularly considering the long-term requirements of superyacht projects.
The balance of approximately GBP21.5 million will provide a partial exit for existing shareholders including both management and the company’s private equity shareholder, Lonsdale Capital Partners.
GYG is also expecting to pay a substantial dividend of 6.4% after its first year of trading.
Zeus Capital also acted as NOMAD and sole broker on the IPO of Tatton Asset Management, which will be formally admitted to AIM tomorrow, with an expected market capitalisation on admission of GBP87 million. The accompanying institutional placing of GBP51.6 million includes GBP10 million of primary capital for business development purposes and will result in 63.5 per cent of the company’s shares being held in public hands on admission.
Tatton Asset Management was founded in 2007 by the current Chief Executive, Paul Hogarth. The business provides a range of services to the IFA marketplace, encompassing discretionary fund management, regulatory and compliance services and mortgage services.
Based in Wilmslow, Cheshire, the business achieved revenues of GBP11.9 million in the year to 31 March 2017, with adjusted operating profits of GBP5.5 million.
Dan Bate, director of corporate finance at Zeus Capital, Manchester, says: “These IPOs highlight how Zeus Capital continues to deliver attractive deals in the marketplace. We’re delighted to have secured AIM listings and substantial fundraisings for our clients, each of which is well placed for further growth and innovation. The listings are expected to enhance their public profile with existing and potential clients, as well as provide access to permanent capital. GYG has demonstrated its entrepreneurial nature in recent years, and has now become a global market leader within a competitive and fast-moving sector.”
Martin Green, Co Head of Financial Instituions Group and director of corporate finance at Zeus Capital, London, says: “Tatton represents a new breed of discretionary fund managers that offer a low cost solution to the IFAs and their clients. The IPO has introduced “blue chip” institutional shareholders to the business and their backing is a strong testament of support for this exciting challenger business model.”
