Ethernity lists on AIM and raises £15m in oversubscribed placing

The company justified the placing, which raised £15.0m in gross proceeds, by saying it would support sales to Tier-1 network providers.

Cisco and Intel were among those companies demanding its technology, the company said.

Its original intention had been to raise £10.0m but faced with demand for up to £20.0m, shareholders chose an intermediate amount in order to avoid diluting themselves excessively.

The placing price was 140p, giving the Israel-based firm a market capitalisation of £45.0m upons its debut on the LSE.

Arden Partners acted as the sole book runner for the placing and was acting as nominated adviser and broker to the company.

The group's directors said admission to AIM would increase the profile and credibility of the company because global operators want to deal with long-term partners who have the financial wherewithal to support their products throughout their life-cycle.

That included being able to meet the volume and delivery requirements of global network operators.

Management also drew attention to the fact that its core technology was protected by five US patents as well as its track-record as a profitable business.

To take note of, company chief Devid Levi was previously the founder of Broadlight, the semiconductor company that was acquired by Broadcom for $230.0m.

The global Network Function Visualisation market will be worth $15bn by 2020, with software comprising 80% of that figure, according to IHS Markit research referenced by the firm.

After the placing, the total number of issued shares stood at 32,518,186 each with equal voting rights.

"Despite Brexit & political uncertainty it shows London remains attractive for great Israeli tech stories," Ethernity said.

Shares in the company which listed under the ticker symbol ENET.L were changing hands at 152.5p as of 1558 BST.