Oxford Nanopore surges 45% in rare London biotech listing

Stock Markets28 minutes ago (Sep 30, 2021 07:26AM ET)

(C) Reuters. FILE PHOTO: A COVID-19 self-test kit is seen before being used by a teacher in Milton Keynes, Britain, January 28, 2021. REUTERS/Andrew Boyers

By Yadarisa Shabong

(Reuters) -Oxford Nanopore Technologies soared 45% in its market debut on Thursday, marking London’s biggest biotech listing in recent years and valuing the firm at almost 5 billion pounds ($6.84 billion).

The company specialises 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 over London, or have listed on the LSE’s junior AIM bourse rather than the main market.

“We went through a thorough and rigorous process and went for London,” CEO Gordon Sanghera told journalists this month. “For many, many reasons is the right place to float, and some of the government moves are encouraging.”

Oxford Nanopore is the LSE’s first major biotech listing since 2014 when allergy specialist Circassia went public and fetched a valuation of 581 million pounds, according to Reuters Breakingviews.

“This will be seen as a vote of confidence for the London Stock Exchange as a worthy launch pad for both tech and pharmaceutical companies, particularly given the NASDAQ’s dominance in this space,” Hargreaves Lansdown (LON:HRGV) analyst Susannah Streeter said in an email.

The company reached a value of about 4.95 billion pounds at the session’s high after opening 28% above their initial public offering (IPO) price of 425 pence.

Oxford Nanopore, whose stated vision is to enable the “analysis of any living thing, by anyone, anywhere,” sells a range of devices for DNA and RNA sequencing – an essential tool in medicine, biology and forensics.

More recently, the company has sold technology for genome sequencing of the novel coronavirus that helps identify variants, besides providing rapid COVID-19 tests to Britain’s national health services.

“The company has really hit a sweet spot since it makes devices to sequence COVID variants, and it’s in a sector that will only become more important, attract more attention and more investment over the coming years,” Markets.com analyst Neil Wilson said.

Oxford Nanopore sold 524 million pounds worth of shares in the IPO. It had set its issue price towards the upper end of an earlier range.

It issued 82.4 million new shares, raising 350 million pounds, while existing shareholders sold 41 million shares, it said in a statement.

($1 = 0.7311 pounds)

Oxford Nanopore surges 45% in rare London biotech listing

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Epic Games opposes Apple’s effort to pause antitrust trial orders

Stock Markets16 minutes ago (Oct 23, 2021 05:40AM ET) (C) Reuters. FILE...

Subscribe to our stories

Join the exclusive subscription today and get premium articles for free

Same Category

Epic Games opposes Apple’s effort to pause antitrust trial orders

Stock Markets16 minutes ago (Oct 23, 2021 05:40AM ET) (C)...

Russian, Chinese warships hold first joint patrols in the Pacific

World55 minutes ago (Oct 23, 2021 05:01AM ET) 5/5 (C) Reuters....

Pecan Pie Balls

If you are looking for a healthy fall snack...