Benchmark Holdings confident on future following successful flotation

THE transaction services team at BDO has successfully advised an animal health, technical publishing and sustainability science business on its flotation on the Alternative Investment Market.

In an oversubscribed fundraising led by Cenkos Securities and supported by Equity Development, Sheffield-based Benchmark Holdings successfully raised £27.5m before expenses through the sale of new ordinary shares at a price of 64p each to a diverse range of investors. In addition, existing shareholders sold shares worth £17.6m.

Total gross proceeds from the placing amounted to £45.1m, making this the largest fundraising in the healthcare sector on AIM during 2013.

Based on the placing price, Benchmark Holdings had a market capitalisation of approximately £87.3m on admission to AIM.

The proceeds of the fundraising will be used by Benchmark to invest in high quality scientific research and development, to enhance its business development team, to expand its core businesses and enter into new segments which fit synergistically with its existing businesses. The proceeds will also be used to fund the expansion of Benchmark’s manufacturing base, as well as selective acquisitions.

Malcolm Pye, chief executive officer, Benchmark, said: “We are really pleased that Benchmark has been so well received. The quality and breadth of our new shareholder base is evidence to the confidence people have in our company.

“Our goal has always been to become a world leading specialist in the development of a sustainable food chain with a particular focus on the development of aquaculture health. The AIM market will provide Benchmark with access to capital and tradable equity, enabling us to pursue a strong pipeline of potential new products and technologies and continue to build the group by acquisition. The team and I are looking forward to this exciting new chapter in Benchmark’s development.”

Mark Plampin, Benchmark’s chief financial officer, thanked BDO for its advice.

He said: “The team at BDO was a pleasure to work with. Their proactive and pragmatic approach proved invaluable due to the fast-paced nature of the IPO process. Their reports were high quality and easy-to-follow.”