13th Feb 2014 12:47
LONDON (Alliance News) - IP Group PLC Thursday said it will increase the size of its capital raising by GBP25.0 million because of significant excess demand for its share issue, as it seeks to fund its growth in the US and to develop "novel" therapeutics through its spin-out companies.
In a statement, IP Group, which had already outlined a plan to raise at least GBP75.0 million through a share issue, said it had made use of the terms of the placing, under which it was allowed to increase its size to GBP100.0 million according to demand.
About 60.6 million shares will be issued at 165.0 pence each in order to raise the funds.
IP Group shares Thursday shot up by 5.6% to 197.55 pence.
"We are delighted to announce the successful completion of the capital raise and that, as a result of significant excess demand from existing and new institutional investors, the board has used its discretion to increase the size of the issue to GBP100 million," Alan Aubrey, chief executive, said in a statement.
"This will enable us to accelerate growth by increasing our overall rate of capital deployment into both our existing portfolio and into new early stage opportunities, in the UK and internationally, as well as to broaden our access to world class intellectual property," he added.
The original placing was announced in late January, on the same day IP Group unveiled a deal to acquire Fusion IP PLC, another company that makes money by collaborating with universities to commercialise academic research.
Separately, IP Group said one of its portfolio companies, Actual Experience PLC, a spin-out from Queen Mary, University of London, began trading on AIM, Thursday morning.
IP Group's 29.9% undiluted stake in the analytics company is valued at about GBP4.7 million.
By Samuel Agini; [email protected]; @samuelagini
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