Torex Retail, a business that was spun out of its parent Torex last month, has made its debut on the London Stock Exchange alternative investment market.
Shares surged by over 50% to GBP0.605 ($1.11) from a listing price of GBP0.40 ($0.73) on Tuesday, and continued rising in early trading Wednesday to GBP0.655 ($1.20), giving it a market valuation of approximately GBP97m ($177m).
Torex Retail develops and installs point-of-sale, point-of-service, CRM, data warehouse, performance management and other back-office systems for the retail sector where it counts firms such as Argos, BhS, Selfridges, Tesco, Virgin Trains, Woolworths, Dixons, and WH Smith among its customers. It made pre-tax income of GBP7.1m ($13.3m) on revenue of GBP59.7m ($111.6m) last year.
Torex decided to spin off the retail group following its plans to merge with software and services provider Isoft Group Plc which is awaiting regulatory permission. The sale of Torex Retail for GBP66.9m ($122m) last month in what amounted to a management buyout looks cheap considering the share performance.
The company raised GBP22.5m ($41.1m) through the accelerated IPO which allows recently purchased companies to float much faster than the usual six-month time frame for standard IPOs. Lynxangel, the company formed to buy out the retail operation, had already raised GBP25m ($45.7m) before the flotation.
This article is based on material originally published by ComputerWire