AKAEI PLC ('Akaei' or the 'Company') today announces:
• The acquisition of All IPO Limited, the business of which will be to create an on-line IPO platform, for a consideration of £3.75 million to be satisfied by the issue of 15,000,000 new Ordinary Shares
• The vendors of All IPO Limited are ADVFN (75%) and Jakob Kinde, Frank Dullaghan, Peter Greensmith and Libertas Capital Corporate Finance (totalling 25%), who will receive new Ordinary Shares in proportion to their shareholdings
• A placing by Noble & Company Limited on behalf of the Company of 6,000,000 new Ordinary Shares at a price of 25p per share to raise £1.5 million before expenses (£1.1 million after expenses)
• The appointment of Noble & Company Limited as broker to the Company with immediate effect
• The proposed appointment of Jakob Kinde, Frank Dullaghan and Haakon Overli to the board, conditional on Admission
• The despatch of a notice of Extraordinary General Meeting to be held on 15 November 2004 to approve, inter alia, the Acquisition
• The proposed change of name of the Company to All IPO plc
All IPO plans to make public offerings available to private investors on the web via a user friendly website. Retail investors will be able to participate on-line in IPOs and other fundraisings. The proposed All IPO business is designed to allow members of the public to apply for new issues of shares in an IPO via a fully online process. It will allow investors to view investment opportunities, apply for shares, pay and have their investments confirmed in an end-to-end electronic process. The Directors and the Proposed Directors believe that the IPO market has made a recovery and is returning to historic levels, and that the time is right to launch a platform to take advantage of the upturn in financial markets and the IPO market in particular.
ADVFN, which operates Europe’s number one stocks and shares website for private investors, has indicated that it will provide All IPO with, inter alia, access to ADVFN’s audience. This will provide a significant distribution channel.
The Directors and Proposed Directors believe that with access to ADVFN’s audience, All IPO will be able to provide a unique internet based end-to-end IPO service to one of the UK’s largest pools of private investors. This will give All IPO a unique opportunity to bring a large number of private investors interested in stocks and shares on to a platform that will give them access to new opportunities. The Directors and Proposed Directors expect to be able to source transactions through a partner network of corporate finance houses, investment banks, brokers and venture capital companies.
The Directors and Proposed Directors believe that the Acquisition presents an opportunity that provides significant prospects to grow shareholder value.
Commenting on the announcement:
Michael Hodges, Chairman of Akaei and of ADVFN, said:
"This is a very attractive opportunity, its gives Akaei a new exciting business going forward and it gives ADVFN a valuable shareholding in an independent listed company."
Frank Dullaghan, Director of All IPO, commented:
"All IPO will provide a neutral platform for all product providers to access a strong retail audience. It is our hope that the development of our platform will lead to greater levels of retail participation in IPOs."