Surface Transforms Share Discussion Threads

[stu31] 26/1/2021 00:52

ls my understanding of that comment was that small retail only held 10% of the shares in issue which in their view justified giving them only 10% of the new shares to be issued i.e. £2m of £20m raised..and because of this there would be no additional shares issued above the £2m for the open offer, unlike last time (could be wrong and hope I am)

[trickydicky1] 25/1/2021 20:30

No tyres to kick from memory, pinkfoot2

Quite a few ceramic discs of different sizes though

;)

Would be very surprised to see industry volumes much above 500m units a year in the very long term if they can cost down another 50%.

[pugugly] 25/1/2021 19:15

Many thanks to all above for update reports/comments about the presentation - Most useful, from a very happy long term holder.

[timbo003] 25/1/2021 18:38

Grahamity

Agreed I trhink the OO questions were well answered and I don't have a beef on the terms of the open offer. I will take up my entitlement and apply for a modest excess, although I would have liked to know whether it was by accident or design that the ex-entitlement date for the open offer was one trading day after the open offer announcement (thus allowing new investors a short window of opportunity to buy shares in the market and qualify for the open offer).

It is certainly unusual as the ex-entitlement day is normally the day before a funding announcement and I don't think it is necessarily a bad thing to have a post dated ex-date, particularly on this occassion as it probably increased demand for the shares which would have allowed existing shareholders (who had no wish to invest any further funds) to increase their holding (albeit slightly) at no additional cost by simply selling a few (circa 1/40th) at 60p (or more) on the day after the announcement and then reinvesting the proceeds in new shares at 50p in the OO.

[longshanks] 25/1/2021 18:25

Correct G1TY, this is the largest amount raised from PIs since listing.

Indeed, the full fund raise (£20m) is almost as much as all previous quantities put together (~£24m)!!

Did I hear correctly that shareholders representing only 10% of the market cap are actually eligible (or taking part) in the Open Offer?

If so, that implies 4m OO shares for holders owning 16m shares, which looks a pretty good ratio. Excess applications may well be more successful than people expect.

If there is an oversubscription, how they handle it is important. Depending on the scale, going by the company's prior form it may well be met in full.

[albert_einstein] 25/1/2021 18:22

pinkfoot2, how come you get to zoom call them?

[fillspectre] 25/1/2021 17:59

RE:Execution risk - correct me if I'm wrong but this risk is mitigated somewhat by the module replication i.e. cell 2 will be almost identical to cell 1. Also as news spreads of ST's success they are going to find it easier to pick the best people. The Open Offer will give them enough cash headroom to recruit one or two extra bods to the management and engineering teams.
Another nugget from the presentation. Brembo's Dyatom product was up against ST's for the OEM8 contract. Perhaps Dyatom has only been produced to help fight off the competition from ST.
I like the fact that many of the OEMs are going dual supply - as dual supply has always been mentioned as a driver for take up of ST brakes. If they all went sole supply with ST it would knock that argument on the head and would only benefit ST if they continue to be the best product on the market. The truth is the CC market will probably grow faster if both Brembo and ST are in the game together. Fils

[bones] 25/1/2021 17:55

So, anyway, the pipeline list extends to:

OEM8 = carryovers (2 more models on top of existing)

OEM9 = New entrant, competitor to OEM8 (2 models, one dual sourced, one sole supplier)

New = German car manufacturer

New = USA car manufacturer

New = European car manufacturer

(All as per slide and later comments)

It's all a bit tsunami like potentially. Just as you think the wave has receded, a bigger blighter follows on and the horizon is still not clear!

[toffeeman] 25/1/2021 17:52

It's not derisory, but that's the wrong question!

How much could they have raised from us?

I would have happily doubled my existing investment.

Thus spake Eeyore :)

[graham1ty] 25/1/2021 17:41

Timbo, I thought he answered the question about the OpenOffer well. This is ( correct me if I am wrong) by far the largest Open Offer to Private investors by SCE. The 2020 raise gave only £1m under the OO. The 2019 and 2018 Placing had no Open Offer.

Back to the 2017 Open Offer, and even after the excess I think it raised only £0.62m.

So, I think that £2m is certainly no derisory as has been suggested

[pinkfoot2] 25/1/2021 17:41

Had a zoom call with the three of them last week.I’m relaxed about execution risk to be honest-they have the bandwidth team wise

[longshanks] 25/1/2021 17:34

I am sure it was recorded Albert and will be released in due course

[albert_einstein] 25/1/2021 17:28

is the meeting recorded anywhere?

[longshanks] 25/1/2021 16:53

You überbull, pinkfoot!!160 participants in the zoom call Pug. You probably had to get in early to get a slot.General bullish presentation with some challenging questions well answered. By way of example: "Is the management team strong enough for the growth anticipated?"

[bones] 25/1/2021 16:51

Broadcast fine on my iPad, Pugugly. I first tried it on my old PC (bigger screen) but it sounded like a broadcast from Mars. Modern iPad, perfect. The dog barking was courtesy of Chez Johnson, I think.

[pinkfoot2] 25/1/2021 16:49

Good stuff-I’m raising my target to £250m market cap within 12 months

[longshanks] 25/1/2021 16:40

Surely not!!

[timbo003] 25/1/2021 16:39

New German OEM?

Surely not BMW?

[bones] 25/1/2021 16:37

Funding of increased debtors especially "US" who use 60 day credit periods. Was "US" previously mentioned? Just curious.

[knownowt] 25/1/2021 16:20

Is that not the first time that the Corvette Stingray logo has appeared on the list of clients?

[graham1ty] 25/1/2021 16:15

Listening in to the presentation. SOLE supplier for OEMs 7 and 8 is massive news. If the rumours of the identity of OEM8 are correct, getting sole supplier status is remarkable

Well done SCE

[bones] 25/1/2021 11:53

Fillspectre, while by no stretch my first purchase of SCE, the 15k I bought at 55p on the morning after the fund raise announcement (post 4954) was included in the calculation of the open offer entitlement via AJ Bell. So, I assume new investors that day were entitled to participate. As 3M shares were traded that day, there are a lot more shareholders. Hard to imagine many will sell their 1 for 39 for a few pence profit though some will do so.

[fillspectre] 25/1/2021 10:28

Still confused as to whether you could have become a shareholder of ST for the first time on Wednesday the 20th Jan. and now been eligible for the Open Offer. Looking forward to the 4pm investor presentation. Fils