Tungsten Corporation, the investment vehicle launched by Duke Street and Pensions Corporation founder Edi Truell, plans to raise £160m when it floats on the London Stock Exchange’s AIM market next week.
The capital raise will give the business an anticipated market value of £225m according to a filing document seen by AltAssets, which shows Truell will drop his current 100 per cent stake to 14.8 per cent.
It adds that Fidelity Worldwide Management will take a 7.2 per cent stake, TT International 5.6 per cent and Kames Capital 5.2 per cent, with several other businesses listed as picking up holdings of five per cent or less.
The firm said the listing would also see it complete its previously announced £99m purchase of business-to-business e-invoicing network OB10.
Tungsten’s strategy is to monetise its global e-invoicing network, which processes more than £100bn per year for many of the world’s largest companies, including 61 per cent of the FTSE 100 and 53 per cent of the Fortune 500.
The business offers supply chain financing through its own bank as well as analytics software to apply to the vast repository of invoice data in an attempt to save its buyers’ money.
Tungsten also has an acquisition agreement in place for First International Bank of Israel, which specialises in supply-chain financing with a particular focus on invoice discounting, the filing shows.
Truell previously said of Tungsten, “We have an exciting opportunity to create a disruptive global player, by enhancing the offering of OB10’s leading global e-invoicing network which already serves a number of the world’s largest corporates and governments.
In addition, we believe that TungstenAnalytics can provide considerable savings for buyers on the platform from which we would expect to benefit.
“The strategy for the group to include a clean, duly authorised, UK bank into the middle of the flow of billions across the global network should provide suppliers with access to accelerated invoice settlement on a transparent and simple to execute basis.
“Tungsten thus aims to transform the financial aspects of the global supply chain.”
Last month Truell gave an exclusive interview with AltAssets about the role of private equity as an effective and proven provider of returns for institutional investor portfolios, which he said had become increasingly apparent in today’s economic climate.
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