Last checked at 18 Dec 2023 07:00
FOR RELEASE ON | 18 December 2023 |
IP Group plc - Share buyback programme
IP Group plc (LSE: IPO) ("IP Group" or "the Group" or "the Company"), which invests in breakthrough science and innovation companies with the potential to create a better future for all, announces that it has today launched a share buyback.
In light of the prevailing discount between the Company's share price and its NAV per share, the Board has determined that now is an appropriate time, consistent with its commitment to shareholder returns, to initiate a share buyback of up to £20 million (the "Buyback Programme").
The Directors believe the current share price discount to NAV significantly undervalues IP Group's portfolio. They have therefore determined to allocate a proportion of cash realisations to shareholder returns through the Buyback Programme. As at 30 November 2023, IP Group had achieved cash realisations of £38 million and had gross cash of £235 million.
The Board remains committed to making regular cash returns to shareholders from realisations. In future these regular cash returns will normally be made in the form of share buybacks when the share price discount to NAV exceeds 20%. Regular dividend payments will be suspended under such conditions, including consideration of any final dividend for 2023.
Details of the Buyback Programme
IP Group has entered into a non-discretionary arrangement with Deutsche Numis to manage the Buyback Programme on its behalf under which the Group will repurchase ordinary shares of 2 pence each in IP Group ("Ordinary Shares") up to an aggregate consideration of £20.0 million. This will be done within certain parameters, including to only buy back Ordinary Shares at a greater than 20% discount to the most recently announced NAV per share. The Buyback Programme will run from the date of this announcement until the end of 2024 unless completed or terminated earlier. Deutsche Numis will make its trading decisions in relation to the Ordinary Shares independently of the Group.
Purchases of Ordinary Shares pursuant to the Buyback Programme will take place in open market transactions and may be made from time-to-time depending on market conditions, the Group's share price, trading volumes in the Group's Ordinary Shares and other factors. The maximum price paid per Ordinary Share (exclusive of expenses) will be no more than the higher of: (i) 5 per cent above the average of the middle market quotations taken from the London Stock Exchange Daily Official List for the five business days preceding any Ordinary Shares being purchased; and (ii) the higher of the price of the last independent trade and the highest independent bid for Ordinary Shares on the trading venue where the purchase is carried out. The minimum price shall be no less than (exclusive of expenses) a price of 2 pence per Ordinary Share, being the nominal value of an Ordinary Share. Under the Buyback Programme, any Ordinary Shares purchased will be held in treasury.
The Buyback Programme is in accordance with IP Group's general authority to purchase a maximum of 103,677,065 Ordinary Shares, granted by its shareholders at the Annual General Meeting held on 15 June 2023. The Buyback Programme will also be effected within the parameters of the Market Abuse Regulation 596/2014/EU and the Commission Delegated Regulation 2016/1052/EU (as incorporated into UK domestic law by the European Union (Withdrawal) Act 2018), including where relevant pursuant to the Market Abuse (Amendment)(EU Exit) Regulations 2019), and in accordance with Chapter 12 of the Financial Conduct Authority's Listing Rules. IP Group confirms that it is not in a closed period and currently has no other unpublished price sensitive information.
IP Group will make further regulatory announcements to shareholders in respect of purchases of Ordinary Shares by the Group as they occur.
For more information, please contact:
IP Group plc | www.ipgroupplc.com |
Liz Vaughan-Adams, Communications | +44 (0) 20 7444 0062/+44 (0) 7967 312125 |
Portland | |
Vic Wallin Alex Donaldson | +44 (0) 7973 823119 +44 (0) 7516 729702 |
Notes for editors
About IP Group
IP Group accelerates the impact of science for a better future. As the most active UK based, early stage science investor, we develop and support some of the world's most exciting businesses in deeptech, life sciences and cleantech (led by Kiko Ventures). Through Parkwalk, the UK's largest growth EIS fund manager, we also back world-changing innovation emerging in leading universities and research institutions. Our specialist investment team combines sector expertise with an international approach. Together we have a strong track record of success, having backed high-profile companies including Oxford Nanopore Technologies plc, First Light Fusion, Hysata, and Oxa. IP Group is listed on the Main Market of the London Stock Exchange under the code IPO. For more information, please visit our website at www.ipgroupplc.com.
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