Mercia Technologies set to raise £70m with flotation on AIM

WARWICKSHIRE technology funder Mercia Technologies has raised £70m before expenses from an institutional placing and has announced it will be admitted to the Alternative Investment Market with a capitalisation of £106m.
 
Mercia’s business is the creation, funding and development of technology businesses nationally with an emphasis on the Midlands and the North of the UK. Mercia brings technology transfer, company formation, incubation, commercialisation and investment, to technology ventures.
 
“Mercia has a well seeded portfolio and pipeline of investments. The company has a direct investment in 11 operating companies and access to a portfolio of 38 businesses through its third party funds, managed by its wholly owned subsidiary Mercia Fund Management,” it said in a statement.

Trading in Mercia’s shares is expected to start on AIM Thursday December 18, 2014. (Ticker symbol MERC).
 
Cenkos is acting as the company’s nominated adviser and broker.

Mark Payton, chief executive of Mercia Technologies, said: “As well as providing us with substantial funds to invest in our established portfolio of emerging stars, this listing will raise our profile and enable us to expand geographically whilst further strengthening our team to support our ambitious but realistic growth plans.”
 
Mercia said its strategy was to provide capital, infrastructure, accommodation and management support to accelerate the development and enhance value in selected technology businesses with a focus on:

•         UK technology sectors which offer investment prospects with high growth potential including:

o    digital
o    electronics and hardware
o    advanced materials, engineering and specialised manufacturing
o    sub sectors within life sciences.

•         investing across the UK, with an emphasis on the Midlands and the North

•         businesses with modest capital needs

•         businesses which combine technology and service provision, are rich in intellectual property, are scalable and require relatively modest capital infusion

•         flexible funding providing early stage businesses with seed and early stage follow-on capital through MFM’s third party funds and as the businesses mature at a later stage, development capital from its own resources to scale the ‘emerging stars’

•         flexible deal sourcing including (but not exclusively) from its collaborative relationships with nine UK universities which provide access to broad range of opportunities.