Emmerson plc has been formed specifically with the purpose of making an acquisition of a natural resources business with operations in South East Asia, Africa or the Middle East.
Optiva Securities Limited received legal advice on the initial public offering (IPO) from Thrings’ London-based corporate partner, Jonathan Morris, and corporate solicitor, Jack Delaney. The transaction marks Thrings’ first IPO of 2017.
The Reporting Accountant was Crowe Clark Whitehill LLP’s London office.
Jonathan Morris said: “This float comes at a good time for Emmerson, particularly with market conditions in the oil and gas sector showing signs of steady improvement. Oil prices are now consistently above US$50 per barrel and OPEC countries appear to be taking steps to cut production. A number of oil and gas companies, including Diversified Gas & Oil PLC and President Energy PLC, have successfully raised new equity capital on the AIM Market in recent months.
“Confidence also seems to be returning to the mining sector, with gold and silver prices in particular having performed strongly in 2016. This has been reflected in an uptick in market activity, with the £787m raised by mining companies representing almost a quarter of the total amount raised on AIM in 2016. Placings such as those by gold producer Avesoro Resources Inc in December 2016, which raised £62m, point to a bright outlook for the sector in 2017.
“Emmerson’s management team will now be looking to locate suitable targets at good prices and leverage off the firmer public market interest in the sector to obtain capital to develop the target business/asset.”
Jeremy King, head of corporate finance at Optiva Securities Limited, added: “We believe Emmerson is well-placed to capitalise on opportunities in the resources sector and we look forward to working with the management team as they seek a suitable acquisition to grow shareholder value.”