Tungsten float – a successful first day on the AIM

So Tungsten floated successfully yesterday on the London AIM stock market. The business has acquired OB10, the leading  e-invoicing firm, one of the leaders in that market, and as we reported here they also have plans to acquire a bank in order to offer supply chain finance, and will also link with clever analytics provided by @UK.

The stock floated at 220p a share, valuing the business at some £200 million. It closed at 232p, a small but positive increase. (Actually, that sort of increase would have been a perfect outcome for the recent Royal Mail floatation, which has caused controversy because the price increase there suggests that the government sold it off too cheaply. Here, it looks like the float price was pretty much spot on).

It's a very positive start, and is indicative of a rapidly growing interest in this sector - both in terms of providers and investors who see opportunities. We believe that bringing together transactional process efficiencies with supply chain finance, and overlaying the sort of clever analytics that we're beginning to see coming from supplier networks, is going to be a hot topic for some time.

And that's one reason why procurement leaders - who might traditionally have seen the payment end of the procurement cycle as a bit dull and not of core interest - should think again. This could and probably should be an area where procurement can make its mark and add some real value for the organisation.

Anyway, congratulations also to Tungsten, OB10 and all those involved in the float!

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