Yellow Cake... Lights up the AIM market

RSM’s capital markets team acted as reporting accountants on the IPO of uranium investment company Yellow Cake plc, which has been admitted to trading on AIM.

The client

Yellow Cake plc is a specialist company operating in the uranium sector, created to purchase and store uranium oxide (U3O8). The business offers shareholders exposure to the uranium price and to exploit a range of opportunities connected with owning U3O8. 

Between 90 per cent and 95 per cent of the net proceeds from the placing and the subscription will be used to purchase U3O8. The remainder is to be used for exploiting other commercial opportunities and for general corporate purposes.

What RSM did

The IPO raised £151m from institutional and professional investors and valued the company at approximately £152.4m on admission, making it the second largest fund raising of by Q3 2018. 

Yellow Cake was advised by capital markets partner Paul Watts with support from Matthew Cowie and Nathan Young, while Gary Shortman and Andrew Lutton, also from RSM, provided tax advice. 

Yellow Cake operates a unique business model that allows investors to invest in uranium oxide without the direct risks associated with uranium development, mining or processing. We wish the directors every success in this exciting new venture.

Paul Watts, Partner, RSM