History and background
History and Background to Tungsten Corporation
Tungsten Corporation was founded in February 2012 by Edmund Truell and Danny Truell to identify and acquire a company, business or asset within the financial services sector which could grow into a business with a significant market presence in a segment with potential for sustainable long-term cash generation, return on equity and growth. They have been joined on the Board in a Non-Executive capacity by Arnold Hoevenaars (Chairman), Peter Kiernan, and Michael Spencer and the Company has been advised by Disruptive Capital Finance LLP. The founders of the Company and management team have to date invested £9.6 million into the Company to provide it with the funds required to undertake the identification and acquisition process.
The Tungsten Board, through its experience in the financial services sector, believed that the financial crisis of the last five years created an opportunity to acquire and/or build a presence in undervalued segments of the financial market where better management and improved use of technology could deliver enhanced returns. Disruptive Capital was exclusively engaged by the Tungsten Board for the purposes of identifying and recommending investment opportunities to the Company.
Admission to Trading on AIM
On 16 October 2013, Tungsten Corporation was admitted to trading on the AIM market of the London Stock Exchange, raising gross proceeds of £225 million. Tungsten’s market capitalisation on admission was £225 million.
Proceeds from the IPO:
- £73 million to fund the cash element of the acquisition of OB10 Limited, the leading global B2B e-invoicing network now called Tungsten Network:
- £58 - £60 million to finance the acquisition of FIBI Bank (UK) Plc and to provide solvency capital to support the invoice discounting activities of the Bank;
- £15 million for working capital and business development purposes; and
- £14 million to fund acquisition and transaction fees and expenses, with a further £2 million payable at the board of Tungsten’s discretion.
The Placing of £160 million represented the largest trading company IPO on AIM since 2008.
Tungsten’s strategic vision
The strategic vision of Tungsten is to create a leading cloud-based global trading network, monetising the existing Tungsten Network e-invoicing platform with the addition of value added services such as seamless, electronically secure, encrypted invoice discounting against “approved for pay” invoices, substantially reducing fraud and dilutions risks so evident in traditional “old model” supply chain finance; and the provision of spend analytics technology across Tungsten Network’s established network.