Graphene company bids to raise £10m with flotation

The firm, which is based in Redcar, Teesside, is understood to want to raise up to £10m by selling shares on AIM.

The company, which is a spin-out from Durham University, says the move will enable it to increase production and accelerate commercial opportunities with blue chip partners.

Trading is expected to begin next month and the company, which is backed by IP Group, hopes to achieve a post-admission market capitalisation of approximately £25m.

Many believe graphene could spell the end for silicon and change the future of computers and other devices forever.

Since 2004, it has attracted significant commercial and academic interest. However, its adoption has been hampered by the inability to produce graphene cost efficiently and at scale.

Applied Graphene Materials manufactures graphene through a process which involves assembling carbon precursors into a graphene sheet.

Unlike most other large-volume graphene production techniques, its process does not rely on the supply of graphite and the firm says it is capable of cost efficiently and continuously producing high-purity graphene.

The company can produce one tonne of graphene per year from its plant based at the Wilton Science Park.

It intends to use part of the proceeds of the fundraising to expand the capacity of its plant to eight tonnes over the next 18 months. Chief executive Jon Mabbitt said the floatation marked a “significant step forward” in the company’s development.

He added: “The global appetite for, and interest in, graphene is growing at a rapid pace.

“Many industries have recognised the significant qualities it possesses.

“We have seen considerable interest from blue-chip businesses which have recognised the advantages of our production process, enabling us to continuously produce graphene cost efficiently on a commercial scale.”

Mr Mabbitt added: “Admission to AIM will provide the company with the funding for its next phase of development and build our position as a global graphene manufacturer.”

If it lives up to its promise, graphene could lead to mobile phones that you roll up and put behind your ear, high-definition televisions as thin as wallpaper, and bendy electronic newspapers that readers could fold away into a tiny square.

IP Group is expected to maintain its 22 per cent stake in the company following the flotation.