Birmingham-based car parts maker Strip Tinning (STG:AIM) saw trading start in its newly listed shares on Wednesday (16 February 2022) as it bids to expand deeper into the electric vehicles space.
The company, which raised £11.5 million (£8 million of growth funding and £3.5 million going to selling shareholders) at 185p per share on junior market AIM, gives the company a rough £28 million market cap at the outset. The stock had drifted to 172.5p in early deals, according to LSE (London Stock Exchange) data.
EMERGING EV GROWTH
Strip Tinning makes automotive connectors used in windscreens and heating systems, among other things, supplying BMW, Ford, Jaguar Land Rover and others.
But it sees its long-run future in EVs and hopes that the fresh growth funding will help the company to ‘accelerate its growth plans and underpin its early mover advantage in the EV battery sector,’ the company said in a statement.
Strip Tinning also wants to use its listed status and stock to bolster its profile and help to attract, retain and incentivise the sort of high calibre engineers it needs. ‘The EV market is seeing high levels of growth and the directors believe that this presents significant further opportunities for the group,’ Strip Tinning said.
65-YEAR HISTORY
The company has come a long way from its roots plating wires and coils for general engineering applications. It was founded in 1957 and is today cash generative and profitable.
It put up compound annual growth of 8.2% a year between 2017 and 2021 despite the headwinds of the Covid-19 pandemic and Brexit, the company said.
‘We are now a leading supplier of specialist connectors to the automotive sector, having established long-term customer relationships with some of the automotive industry’s most familiar names,’ said chief executive Richard Barton.
‘Today’s admission provides us with the resources to further enhance our capabilities and continue on our exciting journey.’
