Cambridge medical technology pioneer Horizon Discovery is set to create UK stockmarket history with a significantly oversubscribed AIM IPO this week.
The personalised medicines specialist is expected to be admitted to AIM this Thursday (March 27) with a market cap of £120.5 million after raising £68.6m ($113m) from institutional investors against an original target of £25m.
The raising comprises £40m for the company before expenses and the sale of £28.6m of sale shares at a price of 180p per share. The outcome compares favourably with the very best results achieved globally in any biotech IPO of recent times.
City sources suggest that the placing – conducted by Panmure Gordon (UK) Limited – was around six-seven times oversubscribed compared to the original £25 million target.
The scale of the IPO also mows down several previous records for a Cambridge biotech float. It is the largest in terms of funds raised by any Cambridge Cluster biotech on AIM and equal fifth largest in the all-time list of placings on the main, international main and AIM markets.
It is also the largest non-therapeutic company raising on any London market behind Oxford Glychosciences. The stunning success of the float is further underlined by the fact that the result has been achieved with the founders only being diluted 5 in 1 and early shareholders, including the University of Cambridge, having realised significant cash returns in pre-IPO place-outs – that’s a flotation outcome for the entrepreneurs that will rarely, if ever, be matched.
Horizon beat MedImmune and others last week to win Business Weekly’s BioMedTech Business of the Year Award and CEO Dr Darrin Disley received the award from AstraZeneca executive Shaun Grady.
In a neat piece of symmetry the previous biggest Cambridge biotech IPO on AIM was by Cambridge Antibody Technology, which raised £43m in 1997 shortly after being acquired by AZ and soon after CAT won our Business of the Year title.
Next biggest Cambridge biotech AIM float was Chiroscience’s £33.6m in 1994, followed by Abcam’s £15m in 2005.
Dr Disley, whose company makes its AIM bow under the ticker symbol HZD, is quoted today in a pre-IPO impact statement to London Stock Exchange. He said: “Horizon’s aim is to become a global market-leader in the provision of life science research tools that enable the elucidation of the genetic basis of disease and the development of personalised medicines that deliver better outcomes for patients.
“The company builds upon a strong commercial performance since inception and the listing of our shares is expected to unlock and deliver significant value to all shareholders moving forward.
“We are very excited by the enthusiasm shown by over 60 incoming investors and the significant oversubscription for the placing at the top of our target valuation range.
“We believe this demonstrates a strong understanding of the value of our technology platform and support of its flexible deployment via a powerful business model that combines the sale of differentiated products and services that drive revenue growth and leveraged R&D programs generating future milestones and product royalties.
“We are looking forward to joining the AIM market and we wish to thank our investors for their continued and fresh support.”