LONDON, July 4 Shares in Intelligent Energy dropped on their debut on the London market on Friday after the fuel cell company raised 55 million pounds ($94 million) to roll out technology to power mobile phone base stations and in chargers for smartphones.
Shares in the stock were trading at 300 pence at 1255 GMT, 40 pence or 12 percent, below the 340 price they listed at.
The funds were raised by the issue of 16.5 million new and existing shares. Existing shareholder Singapore's wealth fund GIC had also exercised warrants for shares, raising a further 16 million pounds, the company said.
Chief Executive Henri Winand said about half of the funds would be used to grow its distributed power generation business, which replace small diesel generators in powering mobile phone towers in India.
"One of our contracts is for up to 4,000 cell towers, that's serving a population equivalent to that of Greater London," he said.
"If you think of it in the Indian market context in which we operate, that's less than 1 percent of the total market. There's plenty to go after and we need capital for that."
The other half would be used to develop its portable energy product Upp, which can charge a potable device like a smartphone using a small replaceable cartridge, he said.
Based on the offer price, the market capitalisation of the group was 639 million pounds, the company said. ($1 = 0.5877 British Pounds) (Reporting by Paul Sandle; editing by James Davey)