LONDON (Alliance News) - Horizon Discovery Group PLC Thursday became the second biotechnology company this year to announce a planned London initial public offering, as a surge in IPO announcements continued for a second day.
Cambridge-based Horizon Discovery, which supplies research tools to pharmaceutical companies including AstraZeneca, Bayer and Merck & co. to enable them to develop personalized treatments that target genes responsible for diseases, said it plans to list on AIM.
It comes just a day after allergy treatments company Circassia Pharmaceuticals PLC said it intends to raise about GBP200 million in its March IPO on Lndon's main market, after setting an indicative price range of 250 pence to 310 pence a share.
Oxford-based Circassia focuses on developing allergy treatments, and its most advanced treatment, which is for allergies to cats, is entering late-stage trials. It also has treatments for ragweed, grass and house dust mite allergies in early-stage trails, and also has product candidates for the treatment of allergies to Birch, the common mould Alternaria, and Japanese cedar.
The personalized gene treatments market that Horizon discovery targets is a relatively new area of pharmaceutical research, but is seen as having huge potential. Horizon's platforms enable the understanding of the genetic basis of disease, the manipulation of genomes, and the creation of genetically-defined human cell lines or so-called "patients in a test tube".
The company, whose IPO is being handled by Panmure Gordon, posted GBP6.6 million of revenues in 2013, up 70% from 2012.
Horizon's announcement came as logistics and parcels business DX Group PLC, a competitor to Royal Mail PLC, started trading on AIM after raising about GBP200.5 million in its IPO, giving it an initial market capitalisation of the same amount. Its shares were trading at 129.00 pence Thursday afternoon, well above the 100 pence IPO price.
Thursday, online domestic appliances retailer AO World PLC had jumped in conditional dealings after setting the price for its main market listing at 285 pence a share. That price had given it an initial market capitalisation of GBP1.2 billion, well above initial estimates, leading to some analysts expressing concerns that the IPO market was becoming overheated.
However, the early surge in its price showed that demand for its shares is strong. Its shares were down 6.1% at 355 pence in conditional trading Thursday afternoon. Unconditional dealings start March 3.
Not every recent offering has been greeted with such enthusiasm. UK convenience store and newsagent chain McColl's Retail Group Ltd Tuesday became the first in a line of retail businesses to list this year, pricing its initial public offering at 191 pence per share, giving the retailer a market value of GBP200 million. It is currently trading at 182.85 pence in conditional dealings.
The retail sector is the busiest in terms of IPO so far this year. Pet products retailer Pets At Home Group PLC and discount retailer Poundland have also confirmed they intend to float, while online fashion retailer Boohoo.com has brought forward its intention to float to early- to mid-March, from late March to early April previously, in an initial public offering on AIM valuing the company at up to GBP500 million that will raise funds for its big expansion plans.
Media have reported that a host of other retail businesses are set to float sometime this year, including discount retailer B&M, department store operator House of Fraser, phones retailer Phones4U, and fashion retailer Fat Face.
Also Wednesday, German commercial real estate company Summit Germany Ltd listed on AIM, while rare and antiquarian book dealer Scholium Group said it intends to IPO on AIM.
By Steve McGrath; stevemcgrath@alliancenews.com; @stevemcgrath1
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