SMALL CAP IDEA: Celebrate to watch as the new issue market gets feverish

The market for new offers here in the UK is the hottest in four years and the momentum will continue.

In the first six months of 2021, there have been 49 IPOs with companies such as Darktrace, PensionBee, Victorian Plumbing and MADE.COM debuting as publicly traded companies.

The traditionally slow third quarter looks set to get off to a strong start with a large number of new entrants already entering the market, or likely to do so at the end of August.

Last week we saw Lords Group Trading, the wholesaler and retailer of building materials, take its bow.

Listing boom: In the first six months of 2021, there have been 49 IPOs from companies such as Darktrace, PensionBee, Victorian Plumbing and MADE.COM

Meanwhile, INEOS-backed HydrogenOne Capital Growth, a clean energy storage investor, will enter the market on Friday (hopefully after banking the projected £250m by placing new shares with institutions).

Looking ahead, there are a number of companies already on the starting platform ready to enter the market, most of which are on the smaller end of the valuation scale. The size will change as the year progresses and the markets remain a reliable source of capital.

In the meantime, it’s worth assessing the prospects of four growth companies that may find it difficult to lead the corporate headlines once the IPO rush begins again.

On the list is Quantum Exponential, which, when it joins the Aquis Exchange next month, will be the only publicly traded company in London specializing in quantum computing, offering a revolution in processing.

Also ready to hit the ‘go button’, although we don’t know exactly when yet, is Central Copper Resources, which plans to raise money to advance copper projects in Africa.

Technology Minerals Limited, meanwhile, is a battery metals specialist with a green twist, having filed its listing prospectus with the London Stock Exchange in mid-June.

It did so after it completed an oversubscribed pre-IPO financing round that reportedly generated £4m in new investment.

The initial cash injection is to be used to develop battery recycling plants.

Green energy: HydrogenOne Capital Growth, which is backed by INEOS (founder Jim Radcliffe, pictured), a clean energy storage investor, is expected to hit the market on Friday

Green energy: HydrogenOne Capital Growth, which is backed by INEOS (founder Jim Radcliffe, pictured), a clean energy storage investor, is expected to hit the market on Friday

TM’s Recycle business has technology that allows it to recycle both lead-acid and lithium-ion batteries. It is also developing a number of battery metal mining projects.

SpectrumX Holdings is also preparing to enter the market, which is developing an inhalation-respiratory treatment regimen with blockbuster potential and has a disinfectant product that appears to be generating significant revenue in the near term.

It is in the process of raising pre-IPO funding ahead of what is expected to be a £50m listing on the LSE.

The money raised will kick-start the commercial rollout of Spectricept, the active ingredient of the company’s non-alcoholic hand sanitizer that is 300 times stronger than bleach but is safe for use on the skin.

It will also be used for the development of SPC-069, which will soon be tested on COVID-19 patients, but can also be used to treat a range of viral, bacterial and fungal infections. In this era of antibiotic resistance, this broad potential will undoubtedly attract a lot of industry interest.

Both the inhalation treatment and the Spectricept sanitizer utilize the antimicrobial properties of a chemical known as hypochlorous acid (HOCl), which is produced as an essential part of our body’s immune system and is used to destroy unwanted bacteria and viruses. .

The formulation mimics how humans make HOCl, meaning it resists contaminants that attack rival hypochlorous acid products.

The imminent introduction of the disinfectant in the UK could quickly transform the business, analysts say.

It brings its SpectriMIST product, an all-in-one disinfectant spray that can be used on skin, surfaces and to eliminate airborne odors, directly to consumers using online technology developed by The Hut Group.

Several NHS hospitals and UK schools, meanwhile, are among the calls of early adopters using Spectricept-powered hand sanitizers as a safer, more effective and skin-friendly alternative to today’s alcohol sanitizers.

SpectrumX, Technology Minerals, Central Copper and Quantum Exponential are just four of a significant backlog of IPOs to be cleared by London’s investment banks in the coming weeks and months.

This means that this year’s annual summer break will likely be a lot shorter than usual for those working behind the scenes dressing up new businesses and getting them ready for prom.

It also requires stock markets to remain cheerful and calm as we head full steam ahead towards the end of what has been a pretty eventful year for the Square Mile.

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