Two firms join the London stock market this week, a video technology company and a property services supplier.
Falcon Media House, which owns patented technology that prevents buffering when streaming video online, listed this morning at a valuation of £14m after raising £4m.
The business, which already has deals in place with Tata, intends to use the funds to grow its content, scale and reach. It also plans to develop one of its distribution platforms into the “Netflix of sports”.
The “over-the-top” streaming market, online videos that do not require the viewer to subscribe to a traditional TV provider, is forecast to grow from $28bn in 2015 to $62bn by 2020. It has “ushered in a broadcasting revolution that has irrevocably transformed the way that millions of people across the globe choose, access and watch multimedia content”, according to executive chairman Gert Rieder. “We are tapping into the insatiable demand for a more personalised and flexible multimedia experience, and in turn establish Falcon into a UK leader in the market.”
On Wednesday, Dukemount Capital, a property and investment services company, will follow suit with a flotation valuing the company at approximately £1.5m.
The group intends to raise £1m, which will be used to source and structure its first real estate acquisitions and cover its listing costs.
The UK-based company plans to acquire, manage and develop UK residential and hotel properties, which are for the most part already pre-leased to housing associations on a long-term consumer price index-linked basis. Dukemount will then agree a sale and leaseback with institutions. These leases, typically more than 30 years long, are called as long-dated income.
Last year, a report published by Schroders showed that the potential demand for long-dated income could be on the order of £1.6 trillion. Dukemont chairman Geoffrey Dart, who has an established record in hotel development, said: “The board have identified a unique opportunity which we expect will help close the growing demand and supply gap for long-dated income by providing institutions such as pension providers higher income yields.”
Dukemount expects to be profitable within the first 12 to 18 months of listing.