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Conditional dealings in the Shares are expected to commence on the London Stock Exchange at 08:00 am (UK time) on 30 September 2021 under the ticker "ONT". Admission of the Shares is expected to occur, and unconditional dealings in the Shares are expected to commence on the London Stock Exchange, at 08:00 am (UK time) on 5 October 2021.
Yes agree v good plan. Cash realisation, share buy back and retain >10% stake in nanopore. IP group is set up perfectly for growth
P Group announces that it has realised approximately GBP84m of proceeds* through the partial sale of its holding in Oxford Nanopore. Consistent with the Group's Capital Allocation Policy, the Board is allocating GBP15m of this realisation towards buybacks of its own shares, with the balance to be invested into opportunities within the Group's existing business. Including the GBP20m announced earlier this year, none of which has been utilised to date, a total of GBP35m is now reserved for buybacks. The buyback programme remains subject to various factors including our shareholder authorities to only buy back shares at a discount to Hard NAV per share. Decisions to repurchase shares will always be undertaken in conjunction with considering other potential investment opportunities for the benefit of stakeholders. The Group will update shareholders on the utilisation of this capital via the relevant regulatory announcements.
Following the sale, IP Group holds 82,062,144 shares (or 10.3% of Oxford Nanopore) which is valued at GBP 348.8 million based on the GBP4.25 Offer Price of Oxford Nanopore. This represents a realised and unrealised fair value gain to IP Group of approximately GBP74m*.
IP Group plc - Portfolio company Oxford Nanopore priced at GBP3.4billion, IP Group generates GBP84m of proceeds*; retains holding valued at GBP348.8m
IP Group plc - Portfolio company Oxford Nanopore priced at £3.4billion, IP Group generates £84m of proceeds*; retains holding valued at £348.8m
See below from Reuters. So ONT will list at 425 per share. Book build highly competitive and successful. Think we can see ONT market cap of >£4bn in first week of trading. All good for IP group NAV as well as no doubt some cash realisation as part of IPO. Plenty of upside from here
Reuters - Britain's Oxford Nanopore IPO-ONT.L has priced its London market debut at 425 pence per share, a bookrunner said on Tuesday, valuing the company at around 3.6 billion pounds ($4.92 billion) including its use of a greenshoe option. Last week, bookrunners had set an indicative price range of 375 to 450 pence per share on the offering, which is now expected to close one day earlier on Sept. 29.
"Whether IPO should trade at or above estimated NAV
I am not so sure off"
I would expect below NAV, but in my mind the question is how far below NAV, and to be fair, if it's above: how far above given the inherent risk, say in comparison to that old stalwart HGT(Premium/Discount:6.55% according to Hargreaves)
I used to follow a website that listed, in a concise way, all the prem./discounts on London listed PE funds. It's hardly indicative of IPO and where IPO stands in terms of PE. But I'll see if I can find it.
I hold a small position in the stock, but confess I don't follow it in great detail, more as "hedge" than anything else. Being so close to the coal face you never know what nuggets they might stumble into, hence my willingness to hold some IPO if for no greater reason than "chance". I am considering adding more. That's why I'm here today I guess.
You have to take some on trust, as it's their best estimate,
on other portfolio holdings the valuation is based on the
last funding round.
So it is a little like private equity in that respect.
Whether IPO should trade at or above estimated NAV
I am not so sure off - it has done so on previous occasions.
Apologies, that original post was meant for the BAE board,
not sure how that happened!.
I do like IPO and have added a number of times this week.
Sorry for mistake in my last line:
Should of course read 'Sept 2022'
This lousy market right now is so undervaluing our co. Onano will be at a fat premium end of first day's trading. I reckon between £2 and £3 over the £4.50. And our other holdings are not exactly overvalued in our existing SP. I just hope we hold onto (or buy back in the after-market) a large holding in Onano because by Sept 2021 I would not be surprised if they changed hands at tenner a pop!
Well of course it's not with the small % float,
that is a known known.
The unknown is the valuation.
Just wondering if it's a concern the statement that Nanopore would not be eligible for inclusion in the FTSE indices?
IPO stake in Oxford Nanopore is just over 14% and could be valued around £600m ,nice
From Bloomberg "The [oxford nanopore] shares will be marketed at 375 pence to 450 pence each through Sept. 30, and start trading the next day". I would be very surprised if bookbuild does not mean listing is at 450 pence = £3.8bn valuation. For IP group £3.8bn nanopore valuation = £192m NAV gain to £1.63bn NAV/153pps. And that's BEFORE any trading of nanopore starts on 1st Oct. Prospects are very nice here!
PRESS: Oxford Nanopore plans GBP3.8 billion IPO valuation - Bloomberg
Fri, 24th Sep 2021 07:01Alliance News
(Alliance News) - Oxford Nanopore Technologies is targeting a valuation of GBP3.8 billion in its initial public offering in London next month, Bloomberg reported on Thursday.
The company plans to raise GBP350 million from new shares in the IPO, the report said, citing terms seen by Bloomberg. That's up from the GBP300 million the company said it would raise in its intention to float published on Thursday last week.
In addition, existing investors will sell up to GBP126 million of shares. The shares will be marketed at 375 pence to 450p each until Thursday next week, and start trading on the Friday, Bloomberg said.
The GBP3.8 billion valuation would be about 53% higher than the GBP2.48 billion Oxford Nanopore achieved in a funding round in May.
But the company will not be eligible for inclusion in the FTSE indices, as Chief Executive Gordon Sanghera will receive a class of "limited anti-takeover shares", Bloomberg added.
n/m
LONDON (Reuters) -The initial public offering for Oxford Nanopore, a provider of rapid COVID-19 tests to Britain's national health services, will have an indicative price of 375 to 450 pence per share, a bookrunner said on Thursday.
The offer will total 523 million pounds ($713.16 million) to 547 million pounds, giving the life sciences company an implied market capitalisation of 3 billion to 3.5 billion pounds , the bookrunner said.
Yep. "LONDON (Reuters) - The initial public offering for Oxford Nanopore, a provider of rapid COVID-19 tests to Britain's national health services, will have an indicative price of 375 to 450 pence per share, a bookrunner said on Thursday.
The offer will total 523 million pounds ($713.16 million) to 547 million pounds, giving the life sciences company an implied market capitalisation of 3 billion to 3.5 billion pounds , the bookrunner said."
Oxford Nanopore prices IPO to give valuation of up to $4.77 billion
moorhey: that's why I never use stop losses. Will be interesting to see what the algos do when nanopore floats for £4bn+ week after next!
danrh: it's at times like this that you come to realise that the majority of the market making transactions are undertaken by computers working on algorithms and the like (I'm no IT geek, but I realise that few humans are involved). This is were individual traders have the edge. Perhaps it isn't people selling, it's computer programmes. I was involved with Paysafe a few years back, and one ordinary lunchtime the SP dropped 60% and then recovered in under an hour - I managed to buy 1000 shares at 40% under that days closing price - and there was absolutely no reasonable explanation.
Incredible that people sold in the dip yesterday! So easy for the large buys at 134-5pps to be filled. None of the upside from oxford nanopore IPO is baked into the shareprice yet (we were back at half-yearly results NAV/shareprice). We are only two weeks away from the listing! I'll sound condescending here (apologies), but I can only assume that many retail investors can't do the right maths to calculate IP group NAV following oxford nanopore IPO. IP group NAV will take a big step up, and IP group will be in enviable position of a having a rich portfolio and cash rich balance sheet....and people sell, it's quite baffling for me.
Could not agree more. Nano is the hottest stock to hit London in years and this co owns 15%. It is probably obliged to sell a chunk in the public offering. I hope that they are not precluded from just buying them straight back because I see more mileage in them even if they do open with a hefty premium. IPO is also not a one-trick pony and, as you say, has possibility of increasing dividends over time. And I reiterate your conclusion. Do your own research. Its not rot rocket science.
I give very few of these, however on a medium term 2-3 year view
risk/Reward looks interesting.
Nice growing divi in the meantime.
All imv only as always and please DYOR.