IP Group generates £84m from Oxford Nanopore IPO

LONDON, UK: IP Group plc notes the portfolio company Oxford Nanopore Technologies announced the successful pricing of its initial public offering (IPO) at 425 pence per Share.

The Company’s market capitalisation will be approximately £3.4 billion at the commencement of conditional dealings on the main market of the London Stock Exchange.

Oxford Nanopore noted that, following positive feedback from potential investors, it now intends to issue approximately 82.4 million new Shares raising gross process of approximately £350 million. The Offer also comprises approximately 41 million existing Shares to be sold by certain existing shareholders, equating to a total Offer size of c.£524 million. An additional c.18.5 million new Shares are being made available by the Company pursuant to the over-allotment option.

IP Group announces that it has realised approximately £84m of proceeds* through the partial sale of its holding in Oxford Nanopore. Consistent with the Group’s Capital Allocation Policy, the Board is allocating £15m of this realisation towards buybacks of its own shares, with the balance to be invested into opportunities within the Group’s existing business.

Including the £20m announced earlier this year, none of which has been utilised to date, a total of £35m is now reserved for buybacks. The buyback programme remains subject to various factors including our shareholder authorities to only buy back shares at a discount to Hard NAV per share. Decisions to repurchase shares will always be undertaken in conjunction with considering other potential investment opportunities for the benefit of stakeholders. The Group will update shareholders on the utilisation of this capital via the relevant regulatory announcements.

Following the sale, IP Group holds 82,062,144 shares (or 10.3% of Oxford Nanopore) which is valued at £348.8 million based on the £4.25 Offer Price of Oxford Nanopore. This represents a realised and unrealised fair value gain to IP Group of approximately £74m.

Alan Aubrey, Chief Executive of IP Group, said: “We’re delighted to see such continued strong global interest in and support for Oxford Nanopore. 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.”