US automotive electrical diagnostics tools supplier Power Probe is a profitable and cash generative business. The flotation on AIM will finance a new manufacturing facility and growth into new markets. More than 90% of sales are currently in the US.
The shares opened at 84.5p and have risen to 94p, which values the company at £69.3m. Just over 600,000 shares were traded in the first two days, while nearly 210,000 shares were traded in the next three days.
The valuation appears reasonable for a profitable business. The initial buying has subsided and there may be a chance to acquire shares at a...
