Acquisition vehicle Selkirk Group PLC on Thursday said it plans to start trading on the London’s AIM market later this month.

The investing company aims to buy an undervalued company or business in the UK and wants to raise a £7.5 million war chest in its initial public offering to cover the expenses of finding and doing a deal.

Selkirk said it is targeting several different sectors such as consumer, technology and digital media, with its first investment aiming to be between £30 million and £1 billion.

Assuming a £7.5 million raise, Selkirk expects 20% of the shares to be held by Kelso Ltd, a subsidiary London-listed investment firm Kelso Group Holdings PLC; and 18% of the shares will be held by funds controlled by Belerion Capital Group, where Iain McDonald, Selkirk’s proposed executive chair, is the manager.

McDonald is chair of London-based internet services company Team Internet Group PLC.

Kelso Chair Nigel Knowles said: ‘Kelso is moving into the next phase of its corporate development with pace, to try and capitalise and unlock value on the undervalued UK stock market. We are pleased to have created Selkirk and that it has partnered with Belerion Capital to create value within its defined sectors. We are pleased to support AIM with Selkirk’s IPO which we believe, despite a large reduction in companies listed in recent years, is one of the best growth exchange platforms in the world. We would encourage the British government to do everything in its power to support the AIM market as it is the lifeblood for many small and growing British businesses.’

Kelso already has stakes in London listings THG PLC, NCC Group PLC, Angling Direct PLC and TheWorks.co.uk PLC. On Thursday, Kelso confirmed it took part in THG’s share placing last week, buying 2.5 million shares to raise its holding to 7.5 million.

Selkirk’s proposed independent director Alan Bannatyne served as chief financial officer of London-based international recruitment company Robert Walters PLC from 2007 to 2023.

Proposed Selkirk executive chair McDonald said: ‘It is our belief that some of the most promising and undervalued businesses are hidden within UK listed conglomerates. Our intention is to unlock the value of such a business within the technology, consumer or digital media sectors. We have chosen to list on the AIM market as London remains a leading capital market and this provides a mechanism for investors to invest in a high quality, focussed and potentially unique asset.

‘We have assembled an experienced management team and board which we will look to expand and deepen further as a target is identified. This includes the ability to work with existing management teams.’

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