Applied Graphene Materials’ (LON:AGM) first morning share price movement proved graphene to be the commanding investment of the current market Zeitgeist. Early trading saw the share selling at a price of 206p, a 32.9% increase on the placing price.
The spin-out from FTSE 250 IP Group managed to raise £11m following the issuance of over 7mln shares at 155p each. The market capitalisation of the company rose to a value of around £34.8m and the revenue raised from the flotation will now be used to grow the company further. Currently plans revolve around increasing the size of the workforce, ramping up production and accelerating the commercial opportunities that are already being explored.
Jon Mabbitt, the chief executive of the company, said today:
“This funding will allow us to begin the next phase of development and to strengthen relationships with our partners. Applied Graphene Materials is now well positioned to meet the growing global appetite for graphene as a wonder material of the 21st Century.”
Chairman of Applied Graphene Materials, Bryan Dobson, added:
“We are delighted with the investor response to the placing which recognisesApplied Graphene Materials’ proprietary, scalable manufacturing process and its associated intellectual property and know-how. Joining AIM marks a significant milestone for the group.”
The company, which was founded as a spin-out from Durham University in 2010, has developed a proprietary process for the manufacture of high specification graphene. AGM manufactures graphene through a sustainable, bottom-up process, which unlike most other graphene production techniques does not rely on the supply of graphite and is capable of producing high purity graphene using a continuous and cost efficient process. The process is readily scalable and AGM owns the IP and know-how behind the process.