A Limerick-based manufacturer of technologically advanced measurement instruments, SupaRule, is to seek a listing on London's AIM market and on the Irish Developing Companies Market (DCM) next month. The company, which employs 15 people, is to raise £2.5 million through a new share issue, valuing it at £8 million.
SupaRule was founded by Mr Martin O'Donoghue. He is no longer actively involved in the day-to-day operations but is a director and retains a 58 per cent stake - which will be valued at about £4.6 million by the share float. Director, Mr James O'Donovan holds a 8.5 per cent interest and another director, Mr Michael Meehan, has 4 per cent. The balance of the equity is held by a number of small private institutions and investors, mainly through a share placing and a BES scheme established in 1991. At that time it raised £240,000, while last month it raised a further £435,000 through a private placing and issue of convertible loan stock. SupaRule has also raised industrial development grants totalling £235,000. The directors are locked in to an agreement to hold on to their shareholdings for 12 months after the flotation. The shares will begin trading on July 9th. Investors can subscribe up to July 2nd next.
The funds will be used to fund marketing and sales of its products, product development, investment in plant and equipment and working capital. SupaRule was established in 1987, manufacturing high technology measurement instruments used in the telecommunications, electrical and railways industries. Its ultrasonic products are used for the measurement of the height of overhead power, telecommunications and railway cables. They are currently used by international utilities, such as Electricite de France, Tokyo Electric Power and British Telecom.
Last year, it introduced its first product to detect electromagnetic fields, Flexiclamp. It has already sold 12,000 to major instrument companies. SupaRule has patent protection for this technology and will seek protection for any new products developed. In 1997, SupaRule reported sales of £900,000. Commenting on the imminent flotation yesterday, managing director, Mr Michael McCormack highlighted the potentially huge market for its products.
"We estimate that there are 4.1 million practising electricians and technicians in Europe and Britain who could benefit from using a Flexiclamp and approximately 5,000 electrical utilities and a significant number of telecommunications utilities, who have a need for a cable height meter instrument."
The brokers in London and Dublin respectively are Astaire, and Dolmen.
