Rheochem is raising nearly £15m in an Australian flotation. It expects to have a dual listing on Aim and the ASX by the end of September.
The drilling fluids supplier and oil explorer is valued at £19m at its current share price of 16.25p so this is a hefty fund raising. When Rheochem floated on Aim in 2004 the ASX was depressed and there wasn’t a lot of interest in the business, particularly because it was so small. The Australians’ appear to much more interested now.
One-third of the money will go on expanding the drilling fluids business and opening a new international plant. Another one-third will go on Rheochem’s share of the appraisal costs of the North Sea assets it has a stake in. The rest will be spent on additional oil and gas interests.
Ocean Resources, which owns around 25% of Rheochem, is being wound up this autumn. Rheochem chief executive Haydn Gardner says that what is happening to this stake should be resolved in the next couple of months.
Interim figures are due to be published at the end of August.
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