Calnex Solutions to be first Scottish IPO in two years

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Calnex Solutions PLC (LON;CLX), a provider of test instrumentation equipment to some of the world’s largest telecoms groups, is to list on AIM after a GBP22.5mln placing.

On admission, the business will be valued at GBP42mln at the placing price of 48p.

The Linlithgow based company is the first Scottish business to float since 2018 and has raised GBP6mln of new money for the business through the placing with GBP16.5mln worth of equity sold by existing shareholders.

Founder and chief executive Tommy Cook said the higher profile from the IPO and money raised will help it capitalise on a market that is booming currently.

“The telecommunications industry is going through unprecedented levels of change, presenting exciting opportunities for the expansion of the business,” he added in a statement.

Set up in 2006, the company has worked at over 600 sites for companies such as BT, China Mobile, NTT, Ericsson, Nokia, Intel, Qualcomm, IBM and Facebook.

Since 2015, Calnex’s revenues have grown annually by 16%. it is profitable and cash generative and said it has a record order backlog going into 2021.

Over 80% of its revenue over the last three years came from repeat customers, it added, with an average length of engagement with its top ten customers of nine years.

Cenkos is the broker handling the float.

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