Genomics, one of IP Group’s portfolio companies, has raised £10.3mln through the issue of shares to investors, including noted stock picker Neil Woodford.
Genomics, a spin-out from the University of Oxford that has developed an analytical platform for genomic sequence data analysis, issued shares to shareholders old and new, including IP Group (LON:IPO) plus one of IP’s managed funds.
IP Group and IP Venture Fund II committed £1.7 million and £0.7 million respectively to the fundraising.
New investors include funds managed by Invesco Perpetual, Lansdowne Partners, Woodford Investment Management and the Wylie Family Trust.
Following completion of the financing round, IP Group's undiluted beneficial stake of 16.7% in Genomics is valued at £4.3 million and IP Venture Fund II's 7.1% stake is valued at £1.8mln.
As a result of IP Group's 33% limited partnership interest in IP Venture Fund II, its effective beneficial interest in Genomics is around 19%.
The fundraising has resulted in an unrealised fair value gain to IP Group of £2.3 million and a fair value gain of £1.0mln to IP Venture Fund II.
Genomics is IP Group’s second spin-out from the University of Oxford in the DNA sequencing field, and is the first to emerge from the Wellcome Trust Centre for Human Genetics.
“We are tremendously excited about the potential for genomic analysis to transform healthcare and about the ability of the company to play a major part in that revolution. We are delighted that this vision is shared by investors and look forward to building Genomics to be a major force in the industry," said John Colenutt, chief executive officer of Genomics.
Shares in IP Group rose 1.9% to 209.7p in the morning session.