The tech sector has a new addition with Kromek Group (LON: KMK) making its debut on the junior market having raised £15mln in new investment that will fund its continued development.
The new shares were issued at 51p a share, which values the group at £55mln, and the issue was oversubscribed.
The business is at the cutting-edge of x-ray technology and has developed products with cadmium zinc telluride (CZT) family of materials at their core.
Recognised as the premier components for digital and spectral radiation detectors, CZT compounds proved very difficult to produce in a commercially viable way.
Kromek’s technique has overcome these limitations based on research by Durham’s physics department.
Its CZT-based products provide high resolution information on material composition and structure, and they are used in multiple applications, ranging from the identification of cancerous tissues to hazardous materials, such as explosives, and the analysis of radioactive materials.
Kromek chief executive Arnab Basu said: "We are delighted with our oversubscribed fundraising.
“After many years developing the business and our technology, Kromek is ready to begin harvesting value by seizing the opportunities to sell our technology and products into the medical imaging, security screening and nuclear detection markets.”
The proceeds from the initial public offering (IPO) will be used for product development, expansion of the sales and marketing team and investment into the company's intellectual property portfolio as well as paying down certain loans, the firm said.
Ampion has an 11.6% stake, which at the listing price, is worth £6.4mln. This is more than its current market capitalisation.
Amphion chief executive Richard Morgan said: "We are pleased Kromek has completed a successful listing on AIM and has raised the capital required to support its commercial targets.
“This is an exciting point in Kromek's development as it has substantial opportunities for growth.
“The listing and new capital will be important in securing further contracts for its leading technology in the medical imaging, security screening, and nuclear detection markets."