Our London office advise RedHot Media on AIM admission
26th September, 2008
Our London office has advised the media brokerage group RedHot International Limited on their admission to AIM, London’s alternative trading platform for growth companies. The company is expected to commence trading with an initial market capitalisation on the first day of trading of £29.6 million.
RedHot’s main operation is buying advertising space for its clients and the company also operates a unique media space bartering system called AxChange. The majority of its activity (73% of the company’s total revenue in 2007) takes place in Malaysia. The company aims to continue growing its operations within Malaysia and also expand their presence in China.
Its bartering system works by RedHot entering into a contract to draw down inventory or services from its clients, which RedHot sells via its extensive distribution network. The proceeds from the sale of its clients’ goods are then used to purchase media space for them.
The rationale behind this unique media brokering system is that it frees up working capital for their clients. Also, it assists companies to enter Malaysia, where capital controls are still in place, via RedHot’s distribution network.
Says Laurence Sacker, Partner at our London office: “We are delighted to be advising on RedHot’s admission to AIM. This shows that AIM is still the stock market of choice for growth companies from around the world.”
UHY Hacker Young acted as RedHot’s reporting accountants and auditors. The firm is currently auditor to a further 22 AIM-listed companies.
UHY Hacker Young offers a range of AIM admission services, including: pre-IPO fundraising assistance, due diligence, tax assistance and planning.
top
