Truells' Tungsten raises £160m on AIM

Tungsten Corporation, which is led by Duke Street founder Edmund Truell and will focus on tapping into the global e-commerce network, was "significantly oversubscribed" on its admission to London's junior market.

Tungsten Corporation has been floated on the AIM market of the London Stock Exchange, according to a statement. 

The venture, which is led by Duke Street founder Edmund Truell, raised £160 million through the placing of approximately 70 million shares at a price of 225 pence each. 

The placing was oversubscribed after attracting strong demand from institutional investors, Tungsten said. 

Tungsten will use £73 million to fund the cash element of the acquisition of OB10 Limited, a global business-to-business e-invoicing network. It bought OB10 from FF&P Private Equity, the direct investment arm of Fleming Family & Partners, for which this sale has generated a return of up to 3.4x. 

Tungsten will use approximately £58 million to £60 million to finance the acquisition of FIBI Bank and to provide solvency capital to support the invoice-discounting activities of the Bank. 

£15 million will be used for working capital and business development, while £14 million will be set aside to fund acquisitions and transaction fees and expenses, with a further £2 million payable to the board at Tungsten’s discretion.

Tungsten aims to further increase its global e-invoicing network, which already processes over £100 billion per year for many of the world’s largest companies, by offering supply chain financing through its own bank.

The placing of £160 million represents the largest trading company IPO on AIM since 2008, according to Tungsten. 

In the statement, Truell said he was “delighted” to have attracted institutional investors “of this calibre”. “We look forward to delivering attractive returns to new and existing shareholders as the business scales. We expect to monetise what is already a great platform through the transformation of the financial aspects of the global supply chain.”
 
“By extending our e-invoicing and early payment services and introducing detailed spend analytics, we plan to broaden our existing client and partner relationships and welcome new organisations to the network,” Luke McKeever, executive director of Tungsten, added. 

Canaccord Genuity acted as sole book runner, financial adviser and joint broker to the Tungsten.

Tungsten was founded by Truell and his brother Danny Truell in February 2012 to acquire companies or assets within the financial services sector. They have been joined on the board in a non-executive capacity by Arnold Hoevenaars, Peter Kiernan, and Michael Spencer.

As well as being chief executive officer of Tungsten, Truell is also founding chairman of Disruptive Capital Finance, which incorporates a £30 million Sustainable Technology Fund, backed by the UK government. He also serves as chairman of the London Pensions Fund Authority (LPFA).