Small Talk: Waterlogic's float sees strong backing from institutions

It is set to be a busy week on AIM, with at least two companies expected move ahead with flotation plans. Waterlogic, which is expected to publish its admission document this week, has already raised £40m in new money via an institutional placing. That puts it on track for a market value of about £112m when it lists later this month.

The company makes water dispensers, or purifiers, for offices, factories, hotels and other workplaces. Such machines usually work with plastic tanks filled with drinking water that need to be replaced at regular intervals.

What sets Waterlogic apart is that its dispensers connect straight to the mains water supply, doing away with the need for refills. In industry jargon, they are called "point of use" dispensers (POU), as opposed to the "bottled water-cooler" variety.

Part of the money raised via the listing will go towards funding the expansion of the company's manufacturing facilities in China. Waterlogic Qingdao Manufacturing, as the wholly owned venture is known, runs a factory in Qingdao on the country's eastern coast. The facility is about and hour's flight from Shanghai or Beijing, and employs some 200 staff that make the entire range of Waterlogic dispensers. The remainder of the funds will go towards things such as financing future acquisitions, the development of the company's Firewall UV purification technology and repaying loans.

The market appears to be a lucrative one. Back in 2009, the business consumer POU market in the US and Europe was worth a massive $2bn, according to the company, which reckons that the figure has continued to expand over the past two years.

The company's own performance has also been good, with Waterlogic generating revenues of more than $68m and boasting an installed base of about 500,000 installed machines at the end of last year.

It has an enviable reach, with its products sold in North and South America, and across Europe. It also sells in Asia, Australia and in Africa. Of these, the key markets are the US, where Waterlogic boasts a 22 per cent market share, and the UK, Denmark, Norway, Germany and France.

Institutional support has been pretty strong, with the placing believed to be have oversubscribed by more than two times. "There has been a great deal of interest from investors in Waterlogic," the chief executive Jeremy Ben-David said, adding: "Our IPO signifies the start of the next major phase of development of Waterlogic, providing us with the financial flexibility to capitalise further and thrive upon the attractive long-term growth opportunities throughout our business with a view to achieving further sustainable, profitable growth."

Spectra readies for public life

Spectra Systems, a specialist in technology that comes in handy in authenticating banknotes and other products, will unveil its intention to float today.

Based in the US, the business was founded back in 1996 by its chief executive, Dr Nabil Lawandy, who at the time was a professor at Brown. The company began with some intellectual property from the university and today has a roster of customers including a central bank from a G8 country and Crane & Co, which has been supplying the US Treasury with currency paper for well over a hundred years.

It also serves another 14 central banks, albeit indirectly, via one of the world's largest commercial security printers and paper manufacturers, which happens to be a Spectra customer.

The business produces both software and hardware products, which include high-speed currency authentication sensors that central banks install in their processing machines; the kit is powerful, with the capability to authenticate notes at rates of up to 40 per second.

Spectra also makes quality-control equipment and consumable materials such as particles, threads and inks and coatings, all of which feature signatures and codes used for authentication.

Beyond the banknote market, Spectra has made forays into the market for verifying and tracking pharmaceutical goods, branded luxury items and other products. Looking ahead, Spectra said it is in the process of commercialising a new security feature which has already been evaluated by a G8 central bank. The unidentified institution has contracted the business to develop sensors to identify the new feature along with existing ones, boding well for the innovation.

Additionally, Spectra, in conjunction with a UK firm, is talking to the Reserve Bank of India about a new-generation feature. The talks have been "through two rounds of elimination", the company said, and are expected to come to a conclusion this year. Interestingly, the features are custom-made to fit the needs of each customer, adding to Spectra's attraction.

"We are excited about floating the company on a market which is located in the centre of the world's economy," Mr Lawandy said.

"Our growth and increased shareholder value are based on the continued adoption of our products by central banks regulating the economies of key G20 countries. AIM is positioned to give us the visibility to accelerate this process."

people And here is why...
Arts and Entertainment
Amazon has added a cautionary warning to Tom and Jerry cartoons on its streaming service
voicesBy the man who has
Arsene Wenger tried to sign Eden Hazard
footballAfter 18 years with Arsenal, here are 18 things he has still never done as the Gunners' manager
Life and Style
The new Windows 10 Start Menu
Arts and Entertainment
Kristen Stewart and Robert Pattinson star in The Twilight Saga but will not be starring in the new Facebook mini-movies
tvKristen Stewart and Stephenie Meyer will choose female directrs
Arts and Entertainment
Hilary North's 'How My Life Has Changed', 2001
books(and not a Buzzfeed article in sight)
ebooksAn unforgettable anthology of contemporary reportage
William Hague
people... when he called Hague the county's greatest
More than 90 years of car history are coming to an end with the abolition of the paper car-tax disc
newsThis and other facts you never knew about the paper circle - completely obsolete today
Arts and Entertainment
There has been a boom in ticket sales for female comics, according to an industry survey
comedyFirst national survey reveals Britain’s comedic tastes
Arts and Entertainment
Twerking girls: Miley Cyrus's video for 'Wrecking Ball'
arts + ents
Arts and Entertainment
Ed Sheeran performs at his Amazon Front Row event on Tuesday 30 September
musicHe spotted PM at private gig
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Trainee Recruitment Consultant - Birmingham - Real Staffing

£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...

Trust Accountant - Kent

NEGOTIABLE: Austen Lloyd: TRUST ACCOUNTANT - KENTIf you are a Chartered Accou...

Graduate Recruitment Consultant - 2013/14 Grads - No Exp Needed

£18000 - £20000 per annum + OTE £30000: SThree: SThree are a global FTSE 250 b...

Law Costs

Highly Competitive Salary: Austen Lloyd: CITY - Law Costs Draftsperson - NICHE...

Day In a Page

Ebola outbreak: The children orphaned by the virus – then rejected by surviving relatives over fear of infection

The children orphaned by Ebola...

... then rejected by surviving relatives over fear of infection
Pride: Are censors pandering to homophobia?

Are censors pandering to homophobia?

US film censors have ruled 'Pride' unfit for under-16s, though it contains no sex or violence
The magic of roundabouts

Lords of the rings

Just who are the Roundabout Appreciation Society?
Why do we like making lists?

Notes to self: Why do we like making lists?

Well it was good enough for Ancient Egyptians and Picasso...
Hong Kong protests: A good time to open a new restaurant?

A good time to open a new restaurant in Hong Kong?

As pro-democracy demonstrators hold firm, chef Rowley Leigh, who's in the city to open a new restaurant, says you couldn't hope to meet a nicer bunch
Paris Fashion Week: Karl Lagerfeld leads a feminist riot on 'Boulevard Chanel'

Paris Fashion Week

Lagerfeld leads a feminist riot on 'Boulevard Chanel'
Bruce Chatwin's Wales: One of the finest one-day walks in Britain

Simon Calder discovers Bruce Chatwin's Wales

One of the finest one-day walks you could hope for - in Britain
10 best children's nightwear

10 best children's nightwear

Make sure the kids stay cosy on cooler autumn nights in this selection of pjs, onesies and nighties
Manchester City vs Roma: Five things we learnt from City’s draw at the Etihad

Manchester City vs Roma

Five things we learnt from City’s Champions League draw at the Etihad
Martin Hardy: Mike Ashley must act now and end the Alan Pardew reign

Trouble on the Tyne

Ashley must act now and end Pardew's reign at Newcastle, says Martin Hardy
Isis is an hour from Baghdad, the Iraq army has little chance against it, and air strikes won't help

Isis an hour away from Baghdad -

and with no sign of Iraq army being able to make a successful counter-attack
Turner Prize 2014 is frustratingly timid

Turner Prize 2014 is frustratingly timid

The exhibition nods to rich and potentially brilliant ideas, but steps back
Last chance to see: Half the world’s animals have disappeared over the last 40 years

Last chance to see...

The Earth’s animal wildlife population has halved in 40 years
So here's why teenagers are always grumpy - and it's not what you think

Truth behind teens' grumpiness

Early school hours mess with their biological clocks
Why can no one stop hackers putting celebrities' private photos online?

Hacked photos: the third wave

Why can no one stop hackers putting celebrities' private photos online?