UK forwarder and groupage operator Delamode has launched an initial public offering (IPO) on the Alternative Investment Market (AIM) of the London Stock Exchange.

Listed on Friday under its holding company, Xpediator, the company raised around £5m from the sale of 20.8m shares.

The money will be used to “accelerate” organic growth, including product expansion, and assist in its acquisition strategy.

Chief executive Stephen Blyth said a successful IPO would represent a significant transition for the company.

“As an experienced provider of freight management services across the UK and Europe, our understanding of transport and distribution has drawn strong interest from investors,” he said.

“By taking the business public, we can expedite our organic growth strategies, as well as pursue targeted acquisitions, to take advantage of a highly fragmented marketplace.”

After generating revenue of £76.3m last year, the group was quick off the mark in February, announcing the acquisition of Lithuania-based e-commerce delivery provider PirkAnglijoje.

At the time, marketing manager Dave Gladen told The Loadstar he hoped the deal would create “a snowball effect” as Delamode looked to further extend its coverage over 2017.

Mr Gladen said the deal would expand Xpediator’s online delivery service, EshopWedrop, in Eastern Europe and the company would be looking to franchise the business model swiftly.

Then in July, Delamode became the latest in a number of companies to launch road freight services between Northern Europe, Iran and the Caucasus destinations of Georgia, Armenia and Azerbaijan.

Mr Blyth said these destinations had been attracting significant foreign investment through governments adopting business-friendly policies and, in Iran’s case, opening up to foreign trade.

“The announcement is, in part, a response to customer demand, but it is also about us taking a view that trade levels are set to continue to increase across this region,” he added.

“We are very pleased to open these routes, servicing the demand for the import and export into these countries, particularly for industrial commodities such as mineral and chemical products.”

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