IP Group portfolio company confirms IPO intentions, inks MOU with Oracle
Intellectual property company IP Group said on Thursday that portfolio company Oxford Nanopore Technologies had confirmed its intention to proceed with an initial public offering and the signing of a strategic memorandum of understanding and a cornerstone investment agreement with Oracle Corporation.
IP Group stated that Oxford Nanopore's offer will comprise a primary offer of new shares, which was expected to raise gross proceeds of approximately £300.0m, and a secondary offer of existing shares to be sold by certain shareholders.
The FTSE 250-listed firm, which was a founding shareholder in Oxford Nanopore in 2005, has a 14.4% undiluted beneficial stake in the company, which was valued at £359.0m as at 30 June.
Separately, Oxford Nanopore entered into a memorandum of understanding with Oracle, whereby the two companies will collaborate on a number of potential new solutions to address opportunities in the applied and clinical markets, and related go-to-market strategies.
Oxford Nanopore and a vehicle controlled by Oracle also entered into a cornerstone investment agreement to subscribe for £150.0m of new shares, with the company targeting a free float of at least 25% of the Oxford Nanopore's issued share capital at admission.
Chief executive Alan Aubrey said: "IP Group has been with Oxford Nanopore from day one and has actively supported the company in a number of ways since then in addition to providing capital. We are delighted to see Oxford Nanopore take the next steps on its journey."
As of 0920 BST, IP Group shares were up 2.20% at 139.60p.