Zeus acted as Nominated Adviser and Joint Bookrunner to Surface Transforms plc to raise £18 million by way of an equity placing and subscription together with an open offer to raise a further £2 million.
Surface Transforms plc (AIM:SCE), are manufacturers of carbon fibre reinforced ceramic automotive brake discs. During the last 18 months, Surface Transforms has been awarded contracts on five new vehicles by four different OEMs, estimated to be worth £43 million in total, commencing in H2-2021. Positive recent discussions and progress made with existing and potential OEM clients, particularly in respect of electrical vehicle models, has resulted in the Company becoming increasingly confident of winning further contracts.
Net proceeds of the fundraising will therefore mainly be used to fund the construction of a new production cell at its UK factory to meet growing demand from both new and existing automotive OEMs. The balance of proceeds with then be allocated for future general working capital requirements needed to finance forecast increased production, and certain incremental plant improvements and ad hoc projects.
Members of the Zeus team included David Foreman, director of corporate finance, assisted by Dan Bate, Jordan Warburton and James Edis, head of corporate broking Dominic King, and Rob Byde senior industrials and transport research analyst.
Zeus is a leading adviser to small and mid-cap private and public companies. Since 2013, Zeus has acted on over 160 transactions valued in excess of £9.8 billion.
David BundredChairman of Surface Transforms plc
We enjoyed working with Zeus on this transaction and particularly valued their introduction to new institutions who share our vision of long term, sustainable growth.
This funding enables the Company to move to the next stage of its development – the building of our second production cell, thereby bringing overall site capacity to £35m revenue per annum, when completed in 2022 . This capacity will then enable us to fulfil contracts we are confident of being awarded in the near future.
David ForemanCorporate Finance Director at Zeus
Congratulations to the Surface Transforms management team on the continuing commercialisation of their carbon ceramic brake discs. This transaction is testament to the hard work of management in building recognition by car manufacturers as to the performance of their products as well as establishing a manufacturing footprint capable of delivering required volumes.
This transaction was, as expected, well supported by both existing holders and a number of new blue-chip institutional investors joining the register.
We very much look forward to supporting Surface Transforms in the next phase of its growth.
If you would like further information, please get in touch with our team.
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