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Rockpool Acquisitions IPO - a new member of the Sub Standard XI? I fear I can't SUFTUM

By Tom Winnifrith | Monday 19 June 2017

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

The demise of so many Standard Listed companies means that poor Cynical Bear has some big holes in his Sub Standard List X1 squad. But fear not, from God's chosen lands of Northern Ireland here comes Rockpool Acqusitions which will list in early July having raised £1.5 million at 10p.

On admission there will be 16,687,500 shares in issue. We know where 15 million of them come from - lucky clients of Share Capital paying 10p a pop. What about the rest? The comoany was incorporated on 21 March 2017. A month later 1,687,500 shares were issued presumably to the board at 8p each. So a 25% uplift in three months when the company actually has no business and is not enfaed in talks about buying any business at this point either. Great. What is not to like?

Assuming the normal IPO costs one imagines that net cash post fund raise will be in the region of £1.2 million - call it 7p a share ( and falling as PLC costs kick in). So why on earth would anyone pay a premium?

Rockpool says it wants to buy a business in an all share RTO for up to £20 million and that business must be based in Northern Ireland. It says that there is an opportunity as Northern Irish businesses are starved of capital. Of course that is complete and utter bollocks. Not only is bank finance as available as it is in the rest of the UK but there are grants aplenty to keep the pork barrel of Ulster politics rolling along.

This is the sort of opportunist float that makes more coke and hookers cash for City advisors that you get at the top of the market. Though wishing a board made up of good Ulstermen the very best of luck I shall not be rushing to invest myself as much as I may wish to SUFTUM.

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