13th Mar 2014 08:41
LONDON (Alliance News) - Imperial Innovations Group PLC Thursday said its largest portfolio company, Circassia Pharmaceuticals, has successfully priced its IPO on the London Stock Exchange's Main Market.
Circassia is expected to raise gross proceeds of about GBP200 million pounds in the placing. The offer price has been set at 310 pence pence per ordinary share.
Imperial holds 26.5 million shares in Circassia, a stake which at the offer price is worth GBP82.1 million at the start of conditional dealings in the shares. This compares with a fair value of GBP45.1 million at the group's last reporting date of July 31, 2013.
The firm has invested GBP25.5 million in its portfolio firm in four funding rounds since 2006. At the offer price, the value represents a 3.2 times return on cash invested and an IRR of 37% for Imperial.
Trading on the main market and the commencement of unconditional dealings in Circassia shares are expected to take place on March 18, 2014.
The additional funds will be used to accelerate the commercialisation of Circassia's late-stage clinical pipeline, said Imperial.
"We are delighted by the market's reception to Circassia's IPO and the resources that the fund raising will bring to the business. The Company has developed a strong technology platform that addresses a large global market with unmet medical needs," Russ Cummings, CEO of Imperial said.
The Circassia IPO follows the listing of Imperial's Oxford Immunotec on NASDAQ in November 2013 and IXICO on AIM in October 2013. "These IPOs demonstrate the strength in depth of our maturing portfolio and also illustrate our business model, which is to build substantial, high quality, well-funded and well-managed businesses in which we retain a meaningful stake," added Cummings.
Shares in Imperial were trading up 9.94% at 428.75 pence per share Thursday morning, one of the biggest gainers on the London market.
By Alice Attwood; [email protected]; @AliceAtAlliance
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