Tan Delta Systems raises £6m in IPO, shares rise on first day of trading
() , an equipment monitoring and data analytics company, reported admission of its share capital to the AIM Market of the LSE at 8 AM in London on 18 August 2023 under the ticker .
The listing raised £6.0m in gross proceeds at a price of 26p. Zeus and PrimaryBid raised another £0.6m for selling shareholders. On admission, had a market cap of £19m, and as of time of writing shares were trading at 28.5p.
Based in Sheffield, UK, Tan Delta develops real-time equipment monitoring sensors for a range of international blue-chip clients. The company said it would use the proceeds from the listing for sales and marketing, product development, and general working capital purposes.
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An exciting first day of trading for Tan Delta Systems. Shares are up to 28.5p so far, but the large spread of 26p/31p as reported by LSE, due to early Friday trading on AIM and volatility, makes it difficult to accurately gauge performance 4 hours into the listing.
Investors appear excited about the company whose sensors primarily analyse the oil in engines and generators to gauge when it should be changed, as well as potential faults with equipment that may need maintenance. Tan Delta scored a £1m contract with Shell last year.
Having achieved a successful floatation and raised £6m, the company is well-positioned for accelerated growth. Equipment monitoring will become ever more relevant as AI and automation continue to take over operation, manufacturing, and maintenance duties.
Tan Delta's sensor solutions provide a number of key benefits to operators, including maintenance optimisation, advance fault detection, and event identification (e.g. oil changes, top-ups and sweetening). Additionally, operators will benefit from improved ESG credentials as reduced oil usage, spare parts and maintenance activities, coupled with increased equipment life and efficiency, reduce their carbon footprints.
As mentioned, the proceeds from the listing will be used mostly for sales/marketing and product development.
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