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P.S. anyone selling IP group shares at 135pps is crackers in my humble opinion. My money is where my mouth is, I for one am buying IP group this morning
@millikino I'm guessing IP group shareprice affected by institutional investors flipping some funds from IP group to nanopore for direct investment. However, flipping from IP group to ONT makes no sense for us retail investors at present due to the obvious disparity between ONT valuation (c £4.95bn based on current shareprice of 620pps!) and IP groups shareprice based on hard NAV which still includes 10.3% of ONT currently valued at £510m!
Sell the news and there is nothing to say that IPO needs to
trade around NAV.
It can trade above NAV obvs, or below.
Added.
ONT already factored in, happy to hold for now
ONT grey market price yesterday at 566-568p, This should put IPO NAV at 167p.
Have I missed something....ONT raise to over £6 a share and yet we gain just 3%! Are we due a bigger rise tomorrow or Monday?
Not sure I’m ready to sell rather just hold for now thanks
Shares in life sciences business Oxford Nanopore Technologies soared in conditional dealings, following its float on the Main Market of the London Stock Exchange. Oxford Nanopore priced its initial public offering at 425 pence per share, giving a market capitalisation of around GBP3.4 billion. Conditional trading began on Thursday, and the shares were up 43% from the issue price at 608.70p, growing the market cap to about GBP4.84 billion. Unconditional dealings begin on October 5. Oxford Nanopore issued 82.4 million new shares, raising about GBP350 million for the company. Another GBP524 million was made by selling shareholders such as IP Group. The Oxford University spin-out is a technology commercialisation specialist focused on DNA and RNA strand sequencing.
At ONT's current share price IP's holding is worth more than GB500m .
Conditional trading began on Thursday, and the shares were up 34% from the issue price at 570p each in early trading, growing the company's market cap to GBP4.56 billion. Unconditional dealings begin on October 5.
"Yes agree v good plan. Cash realisation, share buy back and retain >10% stake in nanopore. IP group is set up perfectly for growth
Who doesn't like a dividend and buy back. I'm intending to add more, but I'll wait to see if " buy on the rumour, sell on the news" makes an appearance over the next few weeks. Every portfolio should have something like IPO it.
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