Schroder UK Public Private to benefit from Oxford Nanopore IPO? – Schroder UK Public Private has highlighted that its portfolio company Oxford Nanopore Technologies Limited has today filed notice of its intention to float.
As part of the potential IPO, it is expected that the company will include a limited secondary offer of £300m, half of which will come from Oracle Corp. While the Schroder UK Public Private remains highly confident of Oxford Nanopore’s prospects to realise a strong IPO and generate continuous shareholder value, given the large position of Oxford Nanopore in the portfolio (21.8% of end March NAV) the company will seek to further diversify its portfolio through a partial realisation of its holding. The proceeds from the partial realisation will be redeployed into existing and new portfolio companies.
The fund’s 3.7% stake in Oxford Nanopore was valued at £90.7m as at 31 March 2021, an implied total equity value of £2.5bn. It is anticipated that the AIFM will revalue the holding based on the trading price of Oxford Nanopore’s shares, in line with the other quoted investments in the portfolio. The company will release a further update once the pricing of Oxford Nanopore’s IPO has been announced.
[The success or failure of Oxford Nanopore’s IPO will have a huge impact on Schroder UK Public Private’s NAV. The FT quotes a potential valuation of £4bn, which would imply a sizeable uplift. However, the actual IPO price will be determined by a book build over coming days.]
SUPP : Schroder UK Public Private to benefit from Oxford Nanopore IPO?