Shares in artificial Intelligence firm Pri0r1ty fell sharply at the open of their first day of trading on London’s junior market.
The company, which helps firms automate tasks such as writing press releases, regulatory news and social media, had been targeting a £855,000 fundraise and a £13million valuation, with AIM-listed shares trading at 13.5p each.
But shares in takeover vehicle Alteration Earth, which will shortly be renamed Pri0r1ty Intelligence Group following the acquisition of Pri0r1ty AI, fell by more than 14 per cent by midday to trade at 10.75p.
Daniel Gee, who founded Pri0r1ty AI just over a year ago, said: ‘Too many early-stage British tech companies think that the only route to growth is through VC funding, or even moving abroad.
‘But I want to send a message that the LSE and the UK capital markets can be a smart and viable route to growing a successful tech company.’
Stock market IPOs can often disappoint founder and shareholder expectations, with newbie stocks remaining volatile in the weeks and months ahead.
Fellow tech pioneer Raspberry Pi made a strong debut earlier this year, with shares rocketing on their first day of trading and maintaining momentum into the final months of 2024.
Disappointing City debut for Pri0r1ty AI
The AIM market has shrunk significantly in recent years as weak trading volumes, poor liquidity and frustrating administrative costs have contributed to poor shareholder returns.
Many firms are opting to remain private for longer, list elsewhere or seek a return to private ownership.
Matt Britzman, senior equity researcher at Hargreaves Lansdown, told This is Money that Pri0r1ty’s debut ‘could serve as a bit of a barometer for how smaller UK tech companies approach capital-raising decisions in the future’.
He added: ‘The SPAC route to listing, which generated a lot of buzz a few years ago, hasn’t really gained lasting traction and we can’t read too much early trading with volumes in the wider markets being low given the timing.
‘The broader debate about the UK’s viability as a listing destination for tech firms is unlikely to fade, even if there’s some success here – shifting sentiment in a meaningful way is probably going to need some bigger fish.’
Pri0r1ty targets a market of small and medium sized businesses with ‘cost effective’ AI solutions.
Its platform, Pri0r1ty Advisor, delivers tailored solutions using deep learning, spanning financing, marketing, and custom AI bots for client-specific needs.
Chief executive James Sheehan said: ‘Pri0r1ty AI was set up to meet a very real and growing challenge. SMEs spend huge amounts of money – over £60billion a year – on external professional services providers when so many of these tasks can be automated using AI.
‘With our technology, companies can use advisors for what they do best, high-end strategic support and technical value-add specialist services, and make the whole process more efficient and cost-effective by letting AI handle many of the everyday tasks.
‘Our solution provides users with a suite of AI-tools that enables the efficient scaling of their business.’
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