Seraphim Space (SSIT) has invested over £21m of the £137m it raised in a C-share (SSIC) issue in May, ploughing more money into two companies it already holds in the portfolio: Pixxel, the Indian satellite constellation operator, has received a follow-on investment of $25m (£18.6m); and Zeno Power, the US nuclear battery technology provider, a further $3.6m (£2.7m).
Mark Boggett, chief executive of Seraphim Space Manager, said he was pleased to deploy more capital to the two companies his firm knew well.
“Both businesses are aligned with key themes driving the next phase of growth in the space sector. Pixxel is advancing the next generation of AI-powered Earth observation while benefiting from the increasing importance of sovereign space capabilities and India’s emergence as a major force in the global SpaceTech market. Zeno is positioned at the convergence of nuclear power, defence and the emerging lunar economy,” he said.
Good progress was being made in investing the remainder of the fund raising in an attractive pipeline of investments, Boggett said, and the company was on track to make a partial conversion of the C-shares into ordinary shares in the fourth quarter of the year.
The announcement was well received with the ordinary shares rallying 7% to 172p and the C-shares jumping 8% to 72.6p though still below their 100p launch price in May.
Our view
James Carthew, head of investment company research at QuotedData, said: “There is a lot more to Seraphim than ICEYE and these first two C-share investments illustrate that. This latest Pixxel funding round – led by a $50m contribution from Singapore’s sovereign wealth fund Temasek – values the business at $400m, which ought to benefit the net asset value of the ordinary shares. Its hyperspectral satellite constellation is great for applications such as monitoring the effects of climate change on agriculture, but has defence applications too – it is better able to detect camouflaged assets than traditional satellite monitoring systems, for example. This funding will help accelerate the expansion of its existing constellation of satellites. Zeno Power provides a vital component in the development of SpaceTech – reliable, long-term power for environments where solar isn’t an option. The ordinary share discount – which is reflected in the rating of the C-shares – makes no sense to me. In my opinion, Seraphim is a far more interesting and potentially lucrative investment than SpaceX, with a valuation rooted far more in reality.”
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