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Flotation on AIM

Calnex unveils first Scottish IPO for two years

Tommy Cook: new capital

Calnex founder and CEO Tommy Cook will make a paper fortune of almost £9m when the company floats on the stock market next month.

Headquartered in Linlithgow and founded in 2006, Calnex designs and makes equipment that tests the performance of telecom network infrastructure for customers such as BT, Ericsson, Facebook and Nokia. 

Mr Cook will own 21% of the company which will be valued at £42m when it debuts on the AIM junior exchange on 5 October with the shares priced at 48p each. It will be Scotland’s first IPO since Nucleus Financial in 2018.

The flotation will raise £6m for the company and £16.5m for existing shareholders.

BGF Investment Management will hold 15% of the equity and Scottish Enterprise 9%. Hearts owner Ann Budge will receive £800,000 as she reduces her stake from 5.9% to 3%.

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George Elliott, previously chairman of Craneware and Indigovision is chairman of the Calnex board.

Graeme Bissett, a former chairman of Macfarlane Group, is a non-executive director.

Calnex is profitable and cash generative, with a record order backlog going into next year and a strong sales pipeline.  

It has worked at more than 600 customer sites in 68 countries as the telecoms industry undergoes unprecedented change.

The funds raised through the IPO, along with the company’s existing cash resources, will allow Calnex to invest in business development and R&D resource, repay its existing debt facility and evaluate opportunities to acquire complementary technologies or businesses to accelerate the company’s growth.  

Mr Cook, said: “The telecommunications industry is going through unprecedented levels of change, presenting exciting opportunities for the expansion of the business.

“Having demonstrated sustained growth since inception, the move onto the public markets will provide us with new capital, a raised profile and enhanced ability to execute on acquisitions, as we seek to capture an increased share of the growing market for telecoms test solutions.  


“We would like to thank our existing shareholders for their ongoing support and welcome our new shareholders at this exciting time for the company.”

Paddy Graham, head of BGF’s Edinburgh office, said: “This investment into Calnex illustrates the strength of BGF’s regional presence and breadth of offering, with our Scottish investors working closely alongside BGF’s quoted team in London.

“We have built a relationship with Tommy and the management team over a number of years and have watched the significant progress they have made, particularly around international expansion, R&D and successful bolt on acquisitions.” 

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