June 22, 2022

What is the new AIM IPO Strip Tinning for Automotive?

Birmingham-based auto parts manufacturer Strip tinning (STG: PURPOSE) saw the start of trading in its newly listed shares on Wednesday (February 16, 2022) as it attempted to expand deeper into the electric vehicle space.

The company, which raised £11.5m (£8m in growth funding and £3.5m for selling shareholders) at 185p per share on the AIM junior market, is giving the company an approximate market capitalization of £28 million at the start. The stock had drifted 172.5p in early trades, according to data from the LSE (London Stock Exchange).

EMERGING GROWTH OF EVs

Strip Tinning manufactures automotive connectors used in windscreens and heating systems, among others, supplying BMW, Ford, Jaguar Land Rover and others.

But it sees its long-term future in electric vehicles and hopes the new growth funding will help the company “accelerate its growth plans and strengthen its first-mover advantage in the electric vehicle battery space,” said the company in a press release.

Strip Tinning also wants to use its listed status and stock to boost its profile and help attract, retain and motivate the kind of high caliber engineers it needs. “The electric vehicle market is experiencing high levels of growth and the directors believe this presents significant additional opportunities for the group,” Strip Tinning said.

65 YEARS OF HISTORY

The company has come a long way from its roots placing wire and coil for general engineering applications. It was founded in 1957 and today is cash-generating and profitable.

It recorded compound annual growth of 8.2% per year between 2017 and 2021 despite headwinds from the Covid-19 pandemic and Brexit, the company said.

“We are now a leading supplier of specialty connectors to the automotive industry, having established long-term customer relationships with some of the most recognizable names in the automotive industry,” said Managing Director Richard Barton.

“Today’s admission provides us with the resources to further enhance our abilities and continue our exciting journey.”


Date of issue: February 16, 2022