Alchemy Partners has raised £16.1m through the IPO of ATH Resources, one of the UK’s largest coal producers, on the London Stock Exchange’s Alternative Investment Market (AIM.)
With shares priced at £1.36, the company was valued at £40.5m, raising net proceeds of £11.25m. Alchemy will remain the largest shareholder with a 26.2% stake.
Alchemy invested £3.1m in ATH Resources in May 1998 in return for a majority equity stake. In November 2003 Alchemy also supported the acquisition of a second opencast site in Ayrshire with £1.5m.
The money raised by ATH will be used to pay Alchemy just over £6m for the discounted loan notes it holds, as well as £1.7m for the fixed rate loan notes. The company will also repay approximately £1m of bank debt and £271,000 in deferred dividends. The remaining £2.3m will be ploughed back into the business.