Atlas raises US$5 million in conjunction with cross-listing on the Nairobi Stock Exchange

PUBLISHED: Dec 16 2014 @ 17:13 | Comments (0) |

Raises US$5 million in Conjunction with Nairobi Stock Exchange Listing

Atlas Development (AIM:ADSS), the African focussed support services and logistics company, has announced that in connection with its previously announced cross listing on the Growth Enterprise Market Segment of the Nairobi Securities Exchange it has successfully raised US$5 million (KES 450 million) through a private placement to Kenyan investors.

Nairobi headquartered Atlas Development provides international standard turn-key development and support service solutions to multiple sectors including oil & gas, mining, construction, NGO and government. The Placing and Kenyan Listing further aligns the Company to its core area of operations, and provides exposure for Kenyan investors to the bourgeoning support services industry in East Africa.

The funds raised pursuant to the Placing will be used to provide additional expansion capital for the Company’s support services offering in Kenya and the wider East African region, where Atlas Development already operates across five countries. The new shares to be issued in respect of the Placing will be issued on 17 December 2014 upon the commencement of trading of the Company’s shares on GEMS, and this will make the Company the first AIM/GEMS cross listed company (trading under the EPIC ADSS). Burbidge Capital acted as placing agent and Kenyan nominated adviser for the Placing.

The Placing, which was offered solely in Kenya, is completed through the issue of 39,139,827 new ordinary shares of the Company at a price of KES 11.50 per share (being approximately 8.13p, similar to the closing price of the Company’s shares on AIM on 20 November). The Placing Shares will, when issued, rank pari passu in all respects with the existing ordinary shares of the Company. Application has been made for the Placing Shares to be admitted to trading on AIM and accordingly dealings are expected to commence at 8.00 a.m. on 17 December 2014 .

Following Admission, the total number of voting rights in the Company will be 433,063,193 ordinary shares. This number may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the FCA’s Disclosure and Transparency Rules.

Carl Esprey, Chief Executive Officer of Atlas Development, said: “I am delighted to announce this successful Placing, which has received strong interest from Kenyan investors, and the completion of the Kenyan Listing, which will become effective tomorrow.

“This support for our strategy from the Kenyan investment community has been driven by a robust financial performance and an upswing in revenues over recent months and is also an endorsement of our approach to the growing support services opportunities in country and beyond in the wider East African market.

“Our cross listing in Kenya will provide investors with a unique opportunity to gain exposure to this sector in East Africa, which continues to provide significant opportunity for considerable growth in the near term.”

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