British cybersecurity firm plots £11m Aim float as London IPOs stir

British cybersecurity firm Chaleit Holdings plans to list on London's junior market, Aim, next month, making it the second company to announce an IPO on the day as the capital's IPO market shows signs of recovery. The Cambridge-based business anticipates trading to commence on October 7 with an estimated market value of £11.2 million, according to documents filed with the London Stock Exchange.

Chaleit aims to raise approximately £1.6 million through the listing, with the final issue price and number of shares yet to be determined.

The announcement coincided with Airtel Money revealing plans for a much larger London flotation, underscoring a rare bright spot for a market that has struggled to attract new listings. Airtel Africa's mobile payments arm seeks a valuation between $8 billion and $9 billion, with the potential to raise up to $800 million through the sale of existing shares.

Although Chaleit's listing is considerably smaller in scope, both events contribute to a tentative pipeline of companies eyeing London's public markets following a prolonged period of listings silence.

As of the previous year, only seven companies had floated on London's stock market, collectively raising £577 million. The recent announcements of Chaleit and Airtel Money could significantly boost these figures. Chaleit focuses on penetration testing and "offensive security," aiming to identify vulnerabilities in clients' systems before malicious actors can exploit them.

The company serves various sectors, including financial services, technology, logistics, manufacturing, healthcare, legal services, and critical infrastructure, with operations spanning the UK, Australia, the US, and plans to expand into Singapore later this year.

Chaleit reported profitability and cash generation in the past year and intends to leverage its existing business for further organic growth and international expansion. The flotation comes as companies confront rising cyber threats and the increasing integration of artificial intelligence, which presents new security challenges for businesses.

The UK cybersecurity market generated £13.6 billion in revenue during the 12 months leading up to June, with a projected annual growth rate of 5.2% through 2031. Chaleit's CEO, Professor Dan Haagman, began his career in cybersecurity in London and previously worked at the London Stock Exchange, where he contributed to establishing early security operations capabilities.

Haagman and his close relatives hold an 82% stake in Chaleit, with additional holdings from the CFO and COO, Jody Hyde, and her relatives, amounting to 10%. Their shares following the float have yet to be determined. The company will be chaired by Ken Ford, who acquired Teather & Greenwood in 1998, listed the business, and subsequently sold it to Icelandic bank Landsbanki for £43 million in 2005.