Companies: CHAR    IOF    KEF    MDM    MORT    OPG   

By the end of May, 11 companies had joined AIM, up from the two previous faltering months. Eight of these newcomers raised fresh cash on arrival, together hauling aboard £173 million, more than March and April’s total combined, yet still representing only a fraction of last year’s fundraisings.

Among them were four resources-focused ventures, including Chariot Oil & Gas, whose shares have already advanced by 13.5 per cent to 147.5p following its £45 million placing, gas explorer Iofina, up 37 per cent at 75.5p, and minerals processor MDM Engineering, up from an issue price of 145p to 202.5p – a gain of 40 per cent.

Indian power league
Elsewhere, there was an interesting trend to note centring on India’s huge energy deficit, which the Indian government has identified as requiring £250 billion of investment over the next five years.

This has prompted a gang of Indian power-focused ventures to target AIM for funds, inspired, no doubt, by the success of power plant developer and operator KSK Power Ventur, up more than fivefold since listing in London in 2006 and now looking to expand its asset management business. KSK is launching a new investment company, the KSK Emerging India Energy Fund, in early June with a significant $500 million dual flotation on AIM and the Channel Islands Stock Exchange. It will invest across the Indian power and energy sector.

Two further similar-sounding power plant operators from the subcontinent are poised to join the London fray. OPG Power Ventures is planning to use the £65 million from its late May Cenkos-brokered IPO to increase its power output from 19 to 276 megawatts by the start of 2010, via four new plants. Meanwhile, KVK Energy plans to double the number of its electricity plants from the current five with an imminent $75 million placing advised by KBC Peel Hunt. The share price gains of KSK imply these later arrivals are at least worthy of further investigation.

Lock on to Mortice
Another May arrival from the subcontinent looks to have an interesting proposition. This is security and facilities management (FM) combine Mortice, at which the Labour government’s former ‘Drugs Czar’ Keith Hellawell is non-executive director. He has joined retired Indian army major Manjit Rajain, who as executive chairman has assembled an experienced board to create ‘the first’ pan-Indian FM company, round his Peregrine manned guarding business.

Adding the necessary experience at the top level is executive director Andrew Barker, apparently known as ‘The Father of FM in India’ due to his five years’ experience in the country, setting up facilities management operations for three companies including MacLellan.

Using the wide spread of Peregrine’s 51 offices Barker already has an excellent platform from which to attack the market. He aims to spend some of the modest £5 million raised from UK institutional investors on a few smaller acquisitions in various specialities such as housekeeping and maintenance.

Looking back at the post-millennium FM boom enjoyed by investors in the UK, Mortice looks well positioned. ‘We think there’s a significant gap in the market,’ says Barker. ‘We’ve built up a team that is well known in the industry and has access to a very good customer base through Peregrine. Using our existing offices we’re going to offer a lot more cost-competitiveness.’

I think Mortice shares could do very well.