RSM advises on Yellow Cake IPO

RSM’s capital markets team has advised on the IPO of uranium investment company Yellow Cake plc, which was admitted to trading on AIM today (5 July 2018).

The IPO raises around £151m from institutional and professional investors and values the company at approximately £152.4m on admission.

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. 

The strategy of the Company is to invest in long-term holdings of U3O8 and not to actively speculate with regard to short-term changes in the uranium price.

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.

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

Paul Watts said: ‘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.' 

This is the fourth IPO in two weeks for RSM's capital markets team, following the recent admissions to AIM of Cake Box Holdings plc, Anexo Group plc and Knights Group Holdings plc.