Pressfit Holdings PLC First Day of Dealings on AIM (9432N)

TIDMPFIT

RNS Number : 9432N

Pressfit Holdings PLC

01 August 2014

1 August 2014

Pressfit Holdings plc

("Pressfit Holdings" or "the Company")

First Day of Dealings on AIM

Pressfit Holdings plc, a manufacturer and distributor of stainless and carbon steel pipe connectors, is pleased to announce the admission of its ordinary shares of 0.25 pence each ("Ordinary Shares") to trading on the AIM market of the London Stock Exchange. Trading of these Ordinary Shares will commence at 8.00am today, 1 August 2014, under the ticker symbol "PFIT" (ISIN number GB00B09JC675). Daniel Stewart & Company Plc is acting as nominated adviser and broker to the Company.

Pressfit Holdings is engaged in the manufacture and distribution of stainless and carbon steel pressfittings for use within industrial and residential piping systems. Pressfitting is a method of mechanically joining metal pipes to a connector, to create a reliable sealed joint.

Pressfit Holdings, through its wholly-owned subsidiaries (collectively the "Group"), uses bespoke tooling to manufacture high-precision, thin-walled pipe connectors for supply to the European, Asian and Chinese markets. The management and sales operate from Hong Kong. The Group's manufacturing unit is a production line facility in nearby Zhuhai, within Guangdong province in China.

Henry Chiu, the Company's Chief Executive Officer said: "Admission to London's AIM market is a huge step forward for Pressfit Holdings' development and it will significantly raise the Company's profile and status amongst customers and investors. It will support us in our continued ambition to provide high quality pressfittings at affordable prices for our customers in the water and gas industries around the world. We look forward to creating increased value for our shareholders as we begin life as a quoted company on AIM."

Full details about Pressfit Holdings and the admission of its Ordinary Shares can be found in the Company's admission document dated 28 July 2014, which is available for download from the Company's website: www.pressfitholdings.com

Admission Statistics

The Company has conducted a small subscription for Ordinary Shares, conditional on Admission.

 
 Subscription Price per Ordinary Share                       9.5p 
------------------------------------------------  --------------- 
 Number of new Ordinary Shares issued pursuant 
  to the Subscription                                     526,316 
------------------------------------------------  --------------- 
 Number of Ordinary Shares in issue immediately 
  following Admission                                  50,905,399 
------------------------------------------------  --------------- 
 Market capitalisation, upon Admission, at         GBP4.8 million 
  the Subscription Price 
------------------------------------------------  ---------------

Background to the Company and the Pressfitting Industry

-- Metal pressfittings manufactured by the Group have been used in Europe, Asia Pacific and China in a diverse range of applications, including conveying liquids, steam, gas and sustaining a vacuum. The Group has regulatory approvals for the use of its products in drinking water systems in the United Kingdom, North America, China and Hong Kong.

-- Pressfitting is a simple and relatively fast process, which uses a hand held sophisticated electrical clamping tool to connect pipes to a uniform standard. The pressfitting process takes place at ambient temperature and therefore does not require an open flame source. Although currently not widely used in the UK, pressfitting techniques have been successfully employed in mainland Europe for more than 40 years.

-- Connecting pipes by pressfitting reduces the installation time and cost compared to more traditional methods of joining pipes, such as welding or the use of threaded connections. Pressfitting methods can be used on a wide range of pipework systems, whilst maintaining the quality and integrity of the system.

-- More traditional pipe joining methods, such as threaded, flanged or welded connections require stainless steel pipes to be of a certain thickness. The pressfitting process allows for the use of thin-walled pipes, which can result in significant savings in the costs of materials. Additionally, the Directors believe that the speed and simplicity of the pressfitting process can shorten the piping system installation process, when compared to more traditional pipe connection methods.

-- A test conducted by the Building Services Research and Information Association demonstrated that a pressfitted system was fast to install, typically taking 63% less time than traditional screwed steel pipe joining systems. The total cost of installation was cut by 27%, when compared with traditional screwed steel pipework.

-- A 2012 report by Global Industry Analysts, Inc. predicted that the global pipe and pipe/hose fittings market will reach US$152 billion by 2017. A 2012 report by industry consultants Global KWD-globalpipe, commented that "press fittings has gone a long way to be the worldwide industrial standard".

-- The Group's strategy is to establish itself as a reliable global supplier of high quality pressfittings, with an initial focus on the European, US and Asian and Chinese markets. The Group's marketing strategy is to focus on the major industry participants in each of the three targeted markets.

-- Over the next two years, Europe, the 'birthplace' of pressfitting technology and by far the biggest market for pressfittings, will be the Group's main target market. The Group intends to apply for additional product approvals and certifications within certain countries in Continental Europe and selective Asian countries. The Group is currently in the process of working towards obtaining the certifications required for the use of its products in Australia and New Zealand.

-- The Group will initially focus on offering precision, high-quality pressfittings at commercially sensible prices, to allow foreign wholesalers and distributors to maintain attractive profit margins.

Enquiries:

 
Pressfit Holdings plc 
Chiu Yung Kit (Henry Chiu)                         +852 2207 0235 
 
Daniel Stewart & Company Plc (Nominated Adviser) 
Paul Shackleton / Alex Brearley                    +44 (0) 207 776 6550 
 
Daniel Stewart & Company Plc (Broker) 
Martin Lampshire                                   +44 (0) 207 776 6550 
 
First City Public Relations 
Allan Piper                                        +852 2854 2666

This information is provided by RNS

The company news service from the London Stock Exchange

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