Investment trust insider on Seraphim Space – James Carthew: Seraphim Space bumps back to earth
Just 10 months ago, Seraphim Space (SSIT) managed to raise £150m from investors in an oversubscribed initial public offer. Stakes-for-shares swaps expanded the company, exuberant markets drove the shares to a 32% premium above net asset value (NAV), and by the end of 2021, the investment trust had a market value just shy of £300m.
However, as we all know, the market’s mood has changed. As I write this the share price is 92p, 11.5% below the recently announced 31 March NAV, and I fear the discount may widen from here.
Citywire’s Algy Hall last week published a great roundup of the state of the space sector highlighting the lack of mainstream fund managers active in the area. SSIT is unique – there isn’t a US equivalent, for example. It just held its first capital markets day with analysts and institutional investors and updated the market on progress within the fund. Attendees got to hear from some of the chief executives of the companies in SSIT’s portfolio.
Investors can take some comfort from the NAV performance to date. Even though the two listed businesses it holds – Arqit and Spire – have dived during the growth sell-off, an uplift in the value of one of its unlisted investments – D-Orbit – more than offsets this.
The portfolio represents a collection of really cutting-edge scientific solutions often addressing issues of which you may have been only vaguely aware, or brand new markets. The numbers bandied around are vast… read more here