(Alliance News) - Shares in Life sciences business Oxford Nanopore Technologies Ltd's soared in conditional dealings, following its float on the Main Market of the London Stock Exchange on Thursday.
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 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.
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 PLC. Oxford Nanopore will have 794.7 million shares issued.
The Oxford University spin-out is a technology commercialisation specialist focused on DNA and RNA strand sequencing.
"We are delighted by the positive response we have received from investors around the world," commented Chief Executive Gordon Sanghera.
"Our focus remains on continuing to innovate, grow, and working towards our goal of enabling the analysis of anything, by anyone, anywhere. This IPO brings us a step closer to being able to fulfil that ambition."
Oxford Nanopore's IPO represents a big win for London over New York. Vaccitech PLC, which like Oxford Nanopore is a University of Oxford spin-out, opted to list on the Nasdaq exchange back in April.
The float also is a win for FTSE 250-listed IP Group, a founding investor in Oxford Nanopore with a 14% stake. The London-based investor in intellectual property-based businesses made around GBP84 million from the sale of shares but retains a 10% stake in the firm, valued at GBP348.8 million based on the offer price.
IP Group said it is allocating GBP15 million of the proceeds towards share buybacks, with the balance to be invested into "opportunities within the group's existing business".
Schroder UK Public Private Trust PLC also stands to gain. Previously, it had said it would sell part of its 3.7% stake in Oxford Nanopore to diversify its portfolio.
Shares in IP Group were 0.7% higher at 137.00 pence each in early Thursday trading in London. Schroder UK Public Private Trust was up 0.2% at 34.86p.
"We're delighted to see such continued strong global interest in and support for Oxford Nanopore," commented IP Group Chief Executive Alan Aubrey.
"Since IP Group helped found Oxford Nanopore in 2005, the company has gone from strength to strength. It is a great example of how IP Group has helped nurture a world-leading company based on scientific research and we're immensely proud of the team's achievements."
By Will Paige; willpaige@alliancenews.com
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Ip Group (IPO)