Digital Barriers soars to 28% premium

Shell company Digital Barriers joined AIM today and the share price has immediately gone to a 28% premium to the placing price.

The former management team of IT consultancy Detica, headed by Tom Black, has set up the company to provide products and services in the homeland security sector.

The company raised £20m of new money at 100p a share. The flotation cost £1m. The company was valued at £24.8m at that price and the valuation increased to £31.72m by the end of the first day.

Executive chairman Tom Black led the management buy out of Detica in 1997 and its flotation in 2002. BAE Systems acquired Detica for £531m in 2008. Former Detica chief operating officer Colin Evans will run the business and Zak Doffman, who used to be group strategy director, will be responsible for Digital Barriers' strategy.

The first phase of the company's strategy is to make acquisitions, the second phase involves international development combined with larger acquisitions and the third phase will concentrate on getting the most of the acquisitions and developing organically.

Management expects to use the cash within 18 months. Negotiations have begun with two target companies.