Student radio tunes into stock market

The student radio group Campus Media hopes to raise £2.5m by selling shares to investors on the Alternative Investment Market in London.

Between 40% and 50% of the group will be up for grabs.

The stock market listing will value the student broadcaster at £5m-£6m.

The money raised will provide working capital and fund audience research once a £600,000 loan from Channelfly, the owner of the national student radio network SBN, has been repaid.

Channelfly will hand back SBN to Campus Media in exchange for a significant minority stake in the group.

Channelfly paid £1m for SBN two years ago.