Leeds spin-out performs below expectations on recent IPO on AIM.
Xeros, a spin-out of UK-based Leeds University for cleaning clothes, has raised £27.6m ($40m) before expenses in its flotation on the local Alternative Investment Market stock exchange.
The company placed 22,422,579 new ordinary shares at £1.23 each at an £80m market capitalisation. This was below expectations of a £30m-£40m initial public offering (IPO) for an expected £100m market cap.
Xeros has developed a polymer bead cleaning system to reduce water use in washing machines. The beads attract dirt away from clothes, reducing water needed for cleaning by 70% and halving the necessary power.
Spun out from Leeds in 2006, the firm has raised $20.5m in venture capital from a consortium including mutual fund manager Invesco, financial services firm Parkwalk Advisors and UK-listed commercialisation group IP Group, which in January acquired Fusion IP after previously owning 20.1% of the target.
Xeros’ IPO is expected to fund the growth of the commercial laundry business and for incremental research and development to support parallel development of other applications through to commercialisation, including in domestic laundry.
Bill Westwater, chief executive of Xeros, said: “Xeros’s patented reusable and recyclable polymer bead cleaning systems have the potential to transform a number of industries globally.”
Investment bank Jefferies International advised Zeros in the IPO.
Picture: Xeros’ polymer beads. Source: Xeros corporate website.
