LONDON (Alliance News) - Redx Pharma PLC saw its shares tick higher in early dealings after it listed on the London Stock Exchange's AIM market Friday, as Sanne Group priced its forthcoming initial public offering on the main market.
Shares in drug discovery and development company Redx were trading at 85.88 pence Friday morning, after it placed 17.6 million new shares at 85p each in its IPO, raising the company about GBP15 million in new funding. Its initial market capitalisation at the placing price was about GBP55.2 million.
Redx, which was established in 2010, is focused on improving the characteristics of existing drug classes to create "highly differentiated 'best-in-class' new drugs" principally in cancer and infectious disease.
"Our business model is to improve on existing drug classes and to partner early, and in doing so establish Redx as a highly attractive pipeline generator for large pharma and emerging life science companies. We already have a pipeline of potential drug candidates, with our focus on areas of high unmet need in cancer and infection," Chief Executive Neil Murray said.
"The new funds we have raised will support the ongoing development of our pipeline as well as the launch of a third therapeutic area focused on immunology. Meanwhile our objective of the Company attaining early profitability remains," he added.
Meanwhile, corporate and fund administration services outsourcer priced its IPO at 200 pence a share, which will give it an initial market capitalisation of GBP232.0 million.
There will be 70.8 million shares in the placing, raising gross proceeds of GBP141.6 million, with GBP28.0 million going to the company and GBP113.6 million to the sellers comprising Inflexion Private Equity, the group's executive directors, members of the senior management team and other individuals.
The funds being raised for the company will be used to partially repay debt, with any surplus to be used for working capital and corporate purposes. It particularly thinks the IPO will help it attract and retain the high-quality staff it needs.
After the IPO, Inflexion will still have a stake of about 11.1% in the business, while the directors and senior management will have a combined 23.6% stake.
It expects the IPO to take place on April 1.
"The IPO recognises the high quality business we have built and our client orientated service platform offers an excellent base upon which we can drive future growth. It also allows us to accelerate our growth plans in a fragmented market that provides plenty of scope for earnings-enhancing consolidation. Additionally, as our business model is people-led and reliant on a high-touch approach, the IPO will enable us to attract and retain the highest quality of staff," Sanne Chief Executive Dean Godwin said.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
