Unicorn increases stake in carbon-ceramic braking leader Surface Transforms

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Unicorn AIM VCT has upped its stake in carbon-ceramic braking manufacturer Surface Transforms plc.

The AIM-listed company placed 17.4 million shares last week in an accelerated bookbuild, priced at 15.5 pence per share – approximately 0.8% discount to its closing price of 15.625p on Wednesday 26 July. Cantor Fitzgerald and finnCap jointly brokered the sale.

Unicorn AIM VCT increased its stake from 10.38% to 13.54% (15,287,000). It is one of the three largest shareholders in the company. Hargreave Hale AIM VCTs also invested in the company.

Surface Transforms braking components are used in the Koenigsegg Agera

Carbon-ceramic brake discs in the Koenigsegg Agera Final.  Source: Surface Transforms

Surface Transforms, based in Knowsley, Liverpool, manufactures carbon fibre-reinforced ceramic (CFRC) materials used in high-performance braking systems for the aircraft and automotive industry.

Carbon-ceramic brakes offer several advantages over iron components including being up to 70% lighter in weight, harder wearing, corrosion-free and less affected by temperature.

The company supplies several supercar manufacturers. Its brakes are fitted as standard on all Koenigsegg vehicles, the Hennessey Venom GT, BAC Mono and will feature in the upcoming Aston Martin Valykrie hypercar.

It also manufactures and supplies brake discs, pads, and complete aftermarket braking kits directly and via distributors for owners of Porsche, Ferrari, Aston Martin, Rolls Royce and Nissan GT-R models.

The Aston Martin Valkyrie will feature Surface Transforms brake discs

Design prototype for the Aston Martin Valkyrie.  Source: Aston Martin

The company says it will use £2 million of the share sale proceeds for general working capital, £750,000 for capital expenditure and £250,000 for testing and development costs.

Surface Transforms listed on AIM in 2002. Unicorn AIM VCT first backed the company in April 2016, investing £1.5 million. You can read our review of Unicorn AIM VCT here.

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