(Alliance News) - Shares in life sciences business Oxford Nanopore Technologies Ltd 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 43% from the issue price at 608.70p each in early trading, growing the company's market cap to 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 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 gained from the float, netting GBP11.0 million from the sale of 10% of its stake, it said Thursday. Previously, it had said it would sell part of its 3.7% interest in Oxford Nanopore to diversify its portfolio. The trust's remaining stake is worth around GBP99.2 million, it said.
Shares in IP Group were 3.0% higher at 140.10 pence each in Thursday morning trading in London. Schroder UK Public Private Trust was up 0.9% at 35.12p.
"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."
Schroder UK Public Private Trust said: "We remain highly confident in Oxford Nanopore's ability to generate significant further shareholder value for the Company in the mid- and long-term. We are also pleased that the listing will continue the further re-balancing of the company's portfolio."
By Will Paige; willpaige@alliancenews.com
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Ip Group (IPO)