The Lemon Fool

Another day – another VCT company heading for IPO…

This time it's Music Magpie (Entertainment Magpie Group)

https://www.londonstockexchange.com/new ... t/14929654

If you have, like me, ever wanted DVDs such as Airplane! and Monty Python films for £3 via eBay, they seem to be the ones to supply it.

Quite the IPO ‘gold rush’ going on this year, after several years of quiet on that front.

Very much so & this one is a real "rave from the grave" !
Intereating to see how the ipo goes as so much music/films are streamed these days there long term outlook selling media looks a bit limited unless there is more to this Guernsey based firm that I'm unaware of.

My family has bought used mobile phones from Music Magpie for years, and they seem very good, including fixing things when they go wrong, so I might have a look at this one.

We sold our entire CD collection to them. They provided a good service and clearly fulfill you a market need

Update for Northern 1,2,3 holders. My rough calculation is that their shareholding and cash out is about 2x what it was carried at. I’d assume small loans also repaid. I’m only in NVT and I’d guess 10% or 7p on the NAV which should be in cash. Hopefully a Special Dividend for shareholders.

musicMagpie plc

("musicMagpie", the "Company" or the "Group")

PLACING AND PROPOSED ADMISSION TO TRADING ON AIM

musicMagpie, a leading re-commerce business in the UK and US specialising in refurbished consumer technology, announces its proposed admission to trading on AIM (the "Admission") and its placing conditional on Admission (the "Placing") of 7,772,020 new ordinary shares (the "New Shares") and 49,415,850 existing ordinary shares (the "Sale Shares") of 1 pence each ("Ordinary Shares"), both at a price of 193 pence per Ordinary Share (the "Placing Price") with institutional and other investors.

The Company shall today publish its Admission Document and has applied for Admission. The full terms and conditions of the Placing and Admission are set out in the Admission Document.

Peel Hunt and Shore Capital are acting as joint bookrunners and joint brokers to the Company in relation to the Placing and Admission. Peel Hunt is also acting as Nominated Adviser to the Company and Deloitte LLP is acting as financial adviser to the Company.

Key highlights of the Placing and proposed Admission

· Based on the Placing Price, the market capitalisation of the Company will be approximately £208 million on Admission;

· The Placing of the New Shares is expected to raise gross proceeds of £15 million for the Company and the Placing of the Sale Shares is expected to raise gross proceeds of £95 million for selling shareholders;

· The Placing attracted strong support from high quality institutional investors and was comfortably over-subscribed;

· On Admission, the Company will have 107,772,020 Ordinary Shares in issue and a free float of approximately 53 per cent;

· On Admission, directors and senior management (together with their connected parties) will own approximately 11.5 per cent. and funds managed or advised by NVM Private Equity LLP and Mercia Fund Management Limited will together own approximately 16.1 per cent of the issued Ordinary Shares;

· The Directors believe that Admission will be an important step in the Group's development and will assist the growth of the business. The Directors also believe that Admission will further strengthen the Company's brand, visibility and profile in the re-commerce market. In addition to broadening the Group's shareholder base, admission to trading on AIM gives the Company the capacity, if required, to raise capital from the equity market or issue shares as consideration to support its strategic objectives as suitable opportunities arise;

· The net proceeds raised for the Company at the time of Admission will be used to repay existing debt facilities and fund the Group's working capital requirements, in particular the Group's expansion of its smartphone rental proposition;

· Admission and commencement of dealings on AIM are expected to take place at 8.00 am on 22 April 2021 under the ticker MMAG; and

Interesting, thanks for that update Mainwaring.

I hold all 3.

I am slightly puzzled by the static nature of the share prices of all 3 in April, especially since the announcements by all 3 on 8 April.

The share prices have not moved since the 8 April announcement, yet contrast this to the Baronsmead VCTs which I also hold which moved up today based on an updated monthly net asset valuation.

I am surprised no one jumped in post 8 April and am not sure what time today’s announcement was released.

If your calculated doubling of current carried valuation is correct, then perhaps there will be a notable movement in all the share prices on Monday.

Article in today's Times (Sat 17 April 2021) on the float of MusicMagpie and mentions NVM
https://www.thetimes.co.uk/article/garage-sale-leads-to-12-3m-payday-on-stock-market-for-musicmagpie-hgh8c3jrg
(paywalled, but free login available)

Times wrote:NVM, a private equity firm that has backed the company since 2015, is halving its stake to 16 per cent in the listing.

Floated succesfully today, small uptick on price in initial trading
Northern NAV uplifts( as result of flotation compared to Dec 2020) announced:-
NVT 4p
N2 3.7p
N3 4.9p

I think that In the case of NVT the increased cash holding per share as a result of this is more or less the same as the NAV uplift, but other may wish to check this.

https://www.investegate.co.uk/northern- ... 0000H2309/
https://www.investegate.co.uk/northern- ... 0000H2308/
https://www.investegate.co.uk/northern- ... 0000H2306/

Good results at first glance.

Tis the season of Special Dividends it seems!