22/10/2005 Davenhan Group plc open the London Markets
Davenham Group plc opens the London Market
22 November 2005
Davenham is a leading independent asset-based lender to the UK SME sector. The company was founded in 1991 in Manchester and has offices in Leeds, Birmingham, Liverpool and Newcastle. Davenham provides lending solutions designed to meet the financing needs of UK SMEs – typically involving loans of between £10,000 and £3 million. The company has a diverse loan portfolio, organised into three divisions: property finance, asset finance and trade finance.
Davenham has raised approximately £27.7 million before expenses through a placing of 10.9 million new ordinary shares at 254 pence per share, valuing the company at approximately £65 million. The proceeds will be used to redeem certain loan notes and mezzanine debt, to increase the capital base of Davenham and to pay for the expenses of the flotation.
In addition, approximately 6.7 million existing ordinary shares have been placed for approximately £16.9 million on behalf of selling shareholders.
David Coates, Chief Executive said:
“We are delighted by the positive response to the placing and the completion of our admission to trading on AIM. I am pleased to welcome our new institutional investors as shareholders of Davenham. We are well positioned to capitalise on the attractive growth opportunities in our market place and we believe the flotation will raise our profile and support future growth by strengthening our ability to lend, expand into the Midlands and the South of the UK and fund selective acquisitions.”
Hawkpoint is the nominated adviser and financial adviser to Davenham and Panmure Gordon is broker. Davenham’s ticker symbol is DAV.L.