European Green Transition (EGT), led by renowned entrepreneur Cathal Friel, is set to embark on an initial public offering (IPO) in London. This move represents the fifth IPO masterminded by Mr. Friel’s Raglan Capital in just twelve years.
EGT, a firm dedicated to assets and businesses essential for the green energy shift, counts Mr. Friel as its primary shareholder with a 43.8% stake. Michael Nolan, a co-founder of Fastnet Oil & Gas which Raglan introduced to AIM (the London Stock Exchange’s market for smaller companies) in 2012, holds an 11.6% share. Aidan Lavelle, the CEO, owns 6.9% of EGT.
These percentages reflect the equity distribution in EGT prior to the capital raised through the IPO.
The company is anticipated to be valued at around £10 million (€11.7 million) before the IPO. EGT plans to execute additional stock placements as it progresses.
The company is anticipated to commence trading on London’s junior AIM market following the Easter period.
Its initial portfolio encompasses three exploration ventures – two located in Sweden and one in Germany – focusing on critical metals. These include lithium, essential for electric vehicle batteries, and rare earth metals such as dysprosium and terbium, which are key components in wind turbine production.
Mr. Friel expressed his enthusiasm about the vast opportunities emerging from Europe’s transition to a green economy. He highlighted their strategy of leveraging mergers and acquisitions (M&A) to target distressed and undervalued assets within this sector.
A key asset for the company is the Olserum REE (rare earth elements) project in southern Sweden. EGT’s goal is to advance this project towards securing a 25-year exploitation permit. Rather than engaging in mining activities directly, EGT plans to partner with another entity and earn royalties.
An impending EU law, designed to enhance the internal supply of essential minerals for the union’s green and digital transitions and reduce dependence on Chinese imports, is expected to be enacted this year. This follows the European Council’s approval of a final text agreed upon by the European Parliament in December.
As the EU shifts away from fossil fuels towards clean energy systems, the demand for base metals, battery materials, rare earths, and other minerals is predicted to soar.
Raglan has a history of successfully taking companies public over the past 12 years, often creating value through the acquisition of distressed assets.
After the downturn in oil prices, Fastnet Oil & Gas divested its oil and gas assets in 2015. Later, in 2016, Mr. Friel orchestrated a merger of the then-listed cash shell company with Amryt Pharma, which sought to acquire and develop a portfolio of drugs for rare and orphan diseases. This merger, involving a €12.6 million stock offering, effectively functioned as an IPO.
Last year, Amryt was acquired by Chiesi Farmaceutici, an Italian pharmaceutical firm, for approximately $1.48 billion (€1.37 billion).
Mr. Friel played a pivotal role in the 2019 IPO of Open Orphan, a pharmaceutical services company, through a reverse takeover of Venn Life Sciences, listed in Dublin. Later that year, the company acquired Hvivo, a UK clinical trials business that was facing challenges at the time. As of Friday, the now-renamed Hvivo group had a market value of €206.8 million.
In 2021, Hvivo spun off its Poolbeg Pharma division, which specializes in developing treatments for infectious diseases. This was achieved through an IPO in London for the unit, raising £25 million (€29.2 million). Currently, Poolbeg’s market capitalization is valued at £48.7 million (€48.5 million).
