Trading in the shares of cash shell Abinger Investments (ABR) began on Aim today, as directors explained that it will look to acquire businesses in the investment and financial services sector. James Crux reports.

Abinger Investments (ABR), chaired by small company expert Stephen Barclay, recently raised £920,000 in a placing of 92 million shares at 1p organised by Seymour Pierce. This gives the company a valuation of £1.2 million today. Formed to buy businesses in the investment and financial services sector, the company says the cash raised in the placing will be used to carry out due diligence on potential acquisitions, several of which have already been identified.

'We'll be acquiring two to three companies in the next couple of months', promises Barclay. 'We intend to acquire businesses which service small- to medium-sized companies and have the potential to generate significant, sustainable growth and profitability'.

According to directors, if the acquisition cupboard remains bare two years after admission, funds held by the company will be returned to shareholders. As well as Barclay, founder and ex-chairman of Seymour Pierce, Abinger's directors include Barclay's Ian Buckley, previously head of corporate finance at Greig Middleton, and John Shaw, a non-executive director of Aim-listed computer components distributor Fundamental-e Investments (FEI) and another investment shell, Intermediate Equity (IEQ). At the close of play, the shares had risen 50 per cent to 1.5p.