Tekcapital shares were nearly 10% higher in early trade on Monday as the technology investment company built on a rally that commenced in late August.
Tekcapital is a UK intellectual property investment group focused on creating valuable products that can improve the lives of a great number of people.
Its portfolio companies are driving innovations in autonomous vehicles, electric vehicle efficiency, healthcare, food technology and smart eyewear.
In the absence of any ‘new’ news released on Monday, here are several factors at play that could be driving the Tekcapital share price higher.
MicroSalt IPO
Tekcapital’s portfolio company MicroSalt appointed Zeus Capital as their nominated advisor for an AIM IPO in late 2022. Understandably, the IPO has not yet taken place – probably because of poor market conditions so far in 2023.
However, after ARM’s successful IPO in the US, sentiment towards initial public offerings is increasing, and one may speculate that MicroSalt could use this as an opportunity to push through its listing.
Although no date is set for the IPO, Tekcapital said in an update in August that MicroSalt ‘has been making steady progress towards its planned IPO’.
The MicroSalt IPO will crystalise value for Tekcapital shareholders and anticipation around the event will likely support Tekcapital shares.
Tekcapital has a 97% stake in MicroSalt.
Guident spin-out
Autonomous vehicle safety and electric vehicle efficiency company Guident has taken the notable step to spin out their regenerative shock absorber technology into a new entity, ReVive Energy Solutions.
Spinning out regenerative shock absorber technology into ReVive Energy Solutions provides the opportunity to create clearly defined value attributed to this technology, separate from Guident’s autonomous vehicle remote control safety centres.
Speaking to the UK Investor Magazine in a recent podcast, Guident CEO Harald Braun alluded to successful tests with a leading tire manufacturer and positive conversations with EV manufacturers.
The regenerative shock absorber technology can potentially increase an EV’s range by 9 to 12 miles, a substantial increase and a major opportunity for adopters.
Tekcapital owns 100% of Guident.
Bellsucura contract wins
Portable oxygen unit developer and manufacturing company Belluscura has reported a step change in commercial traction with $15m worth of orders from US distributors and a separate royalty agreement with their Chinese partner worth up to $55m over ten years.
Tekcapital has around an 11% stake in AIM-listed Belluscura. Belluscura has a market cap of £46m.
Innovative Eyewear’s licensing agreements are set to come online
Smart eyewear technology company Innovative Eyewear has inked licensing agreements with leading lifestyle and fashion brands Reebok, Nautica and Eddie Bauer.
The products covered by these licensing agreements are set to be released to the market in the coming months.
While there is no indication of potential revenues, one would think these licensing agreements greatly boost sales.
Tekcapital owns around 40% of Innovative Eyewear, listed on the NASDAQ.
