Zeus is delighted to have acted as Nominated Adviser and Joint Bookrunner to Surface Transforms plc, to raise £16 million by way of an equity placing and subscription together with an open offer to raise up to a further £3 million.
Surface Transforms are manufacturers of carbon fibre reinforced ceramic automotive brake discs. The Company has made continual progress in the past 18 months, building a contracted order book of £190 million from ten new vehicles across 6 OEMs, and a prospective revenue pipeline of a further £400 million. Furthermore, management expect to continue this positive momentum with the award of another new contract before the end of 2022.
The net proceeds of the fundraising will be used to finish expanding the current Knowsley manufacturing facility from revenue capacity of £50 million p.a. to £75 million p.a., and to commence the fit-out costs of a new manufacturing facility to be built opposite which will, when complete, expand the Company’s revenue capacity to £150 million p.a..
Members of the Zeus team included: David Foreman, James Edis and Luke Knight (Investment Banking); Dominic King (Corporate Broking); and Robin Byde (Research).
David BundredChairman of Surface Transforms
“We were impressed by the tenacity and creativity of Zeus in this fund raising. We have a compelling story – more capacity being needed on the back of both contracted orders and a solid pipeline – but the timing of this “good news” need was terrible as it coincided with significant macro economic headwinds, the “mini budget” and resultant stock market nervousness. Despite negative market sentiment, Zeus rose to the challenge – the test of Brokers is when markets are bad, not when they are good.”
David ForemanDirector, Investment Banking at Zeus
“Congratulations (again!) 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 – having established a rapidly accelerating order book and pipeline across an increasing number of car manufacturers, they are aggressively building out their operational capacity to satisfy this existing and expected demand. Moreover, this fundraise and capacity commitment, can demonstrate to OEMs across the globe that Surface Transforms is driven to become the leading supplier of high performance carbon ceramic brake discs to the automotive sector – certainly an increasing number of institutional and other investors believe in their products, this management team and their strategy.
This fundraise 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 phases of its growth.”
If you would like further information, please get in touch with our team.
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