uk-based engineering company Corac is to float on the London Stock Exchange’s Alternative Investment Market (AIM) this month. The company will have an estimated value of around GBP90 million.
The IPO will raise an estimated GBP10 million to fund initiatives including potential acquisitions and organic growth in a growing world compressor market valued at approximately GBP24 billion. In the past, Corac has received backing from a number of investment groups including lead investor SCI Private Equity Limited, the only shareholders to sell part of their stake. The firm has sold one million shares, reducing its stake in the company from 18 per cent to 14.8 per cent.
Existing named shareholders in Corac are West LB Equity Bridge Fund with a five per cent holding, Prudential with 3.7 per cent and State Street Capital with just under three per cent. All of them have retained their original stakes in the company.
Corac was formed in 1996 at Brunel University Science Park, Uxbridge, to research and develop a number of traditional technologies within the field of compressed air. The company manufactures a unique “no-oil” industrial air unit compressor, the downhole gas compressor and associated seals for compressors and pumps.
Industry experts suggest the market for oil-free compressors is growing at a rapid rate of some ten per cent per annum and is already worth an estimated GBP1.4 billion. Money raised from the flotation will be used to fund potential acquisitions and organic growth; finance a new UK final assembly and test facility; finance further research and development; and build a high level sales and marketing team for its licensing business model. In addition, the company hopes to produce five pre-production compressors and develop its associated seals product.