Yu Energy, an independent gas and electricity supplier that focuses on SMEs, has announced it will float on Aim, in conjunction with a placing to raise around £7.5m of new capital.
The junior market listing is expected to take place before the end of March. Shore Capital is acting as the sole adviser.
Yu Energy was set up in 2013 by Bobby Kalar who, at the time, was running Redrose Care Homes. Kalar says the frustration that arose from dealing with Redrose’s energy suppliers was what triggered him to found Yu Energy.
The company had revenues last year of £3.9m and has contracted revenue this year of £8.4m. Yu Energy’s reach is growing rapidly, with the number of meter points it supplies growing by approximately 10 per cent per month.
“Since entering the energy supply market in 2012 we have overcome all the regulatory and industry barriers to entry and are now in a position to move to the next stage of our development,” chief executive Bobby Kalar said.
“The admission and capital raising is a key stage enabling us to continue to grow. A significant proportion of the capital raised will be applied to the provision of financial collateral to support our hedging policy as the group continues to grow its customer base.
“We believe that many SMEs do not actively manage their energy suppliers and there is a tremendous opportunity for Yu Energy, as an independent provider focused on servicing SMEs, to grow our share of the market.”
Yu aims to make further headway into the UK’s SME energy market, approximately 90 per cent of which are supplied by the “big six” energy firms.