Sep 30 (Businesshala) – Oxford Nanopore Technologies (ONT.L) surged 45% on its market debut on Thursday, marking London’s biggest biotech listing in recent years and valuing the firm at around £5 billion (US$1 billion). 6.84 billion).
The company specializes in DNA sequencing and provides rapid COVID-19 tests.
The London Stock Exchange (LSE) has enjoyed a strong run of IPOs this year, yet biotech firms have traditionally opted to list in New York, London, or LSE’s junior AIM exchange instead of the main market. Huh.
“We went through a thorough and rigorous process and went to London,” CEO Gordon Sanghera told reporters this month. “The perfect place to swim for a number of reasons, and some of the government steps are encouraging.”
Oxford Nanopore is LSE’s first major biotech listing since 2014, when allergy specialist Circassia (CIRCI.L) went public and received a valuation of £581 million, according to Businesshala Breakingview.
“This vote of confidence for the London Stock Exchange will be seen as a worthy launch pad for both tech and pharmaceutical companies, especially given the dominance of the NASDAQ in the region,” said Hargreaves Lansdowne analyst Susannah Streeter. Said in email.
The company rose to a session high of around £4.95 billion after opening 28% above its initial public offering (IPO) price of 425 pence.
Oxford Nanopore, whose stated vision is to enable “analysis of any living thing, by anyone, anywhere,” sells a variety of tools for DNA and RNA sequencing – an essential tool in medicine, biology and forensics.
Recently, the company sold technology for genome sequencing of the novel coronavirus that helps the UK’s National Health Services identify variants in addition to providing rapid COVID-19 testing.
Markets.com analyst Neil Wilson said, “The company has really hit a sweet spot as it builds tools for sequencing COVID variants, and this is in an area that will only become more important, more attention.” will attract and attract more investment.”
Oxford Nanopore sold shares worth £524 million in an IPO. It had set its issue price at the upper end of the earlier range.
It issued 82.4 million new shares, raising £350 million, while existing shareholders sold 41 million shares, it said in a statement.
($1 = 0.7311 pounds)