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Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

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Davenham - Fast growing asset-based lender eyes float

December 2005

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

Given its impressive track record, Manchester-based Davenham, a leading asset-based lender to small and medium sized businesses (SMEs) in the UK, is likely to be one of the more keenly watched flotations when it is introduced to AIM later this month. In a placing, which is being arranged by broker Panmure Gordon, Davenham is expected to raise gross proceeds of £27.5m, which will go towards paying off loan notes and other debts, with the balance earmarked to fund future growth. Existing shareholders intend to sell shares up to a value of £50m, while the market cap. at the placing price is expected to be between £80m and £92m. Founded in 1991, Davenham has developed a profitable niche in the North West of Eng ...

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