IP Group generates £84m from Oxford Nanopore IPO

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THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE UK VERSION OF THE MARKET ABUSE REGULATION (EU NO. 596/2014) WHICH FORMS PART OF ENGLISH LAW BY VIRTUE OF THE EUROPEAN UNION (WITHDRAWAL) ACT 2018.

IP Group plc - Portfolio company Oxford Nanopore priced at £3.4billion, IP Group generates £84m of proceeds*; retains holding valued at £348.8m

IP Group plc (LSE: IPO) ("IP Group" or "the Group"), the developer of intellectual property-based businesses, notes that portfolio company Oxford Nanopore Technologies plc ("Oxford Nanopore" or "the Company"), the Company behind a new generation of nanopore-based sensing technology, whose products enable the real-time, high-performance, scalable analysis of DNA and RNA, has announced the successful pricing of its initial public offering (the "IPO" or the "Offer") at 425 pence per Share (the "Offer Price"). The Company's market capitalisation will be approximately £3.4 billion at the commencement of conditional dealings on the main market of the London Stock Exchange.

Oxford Nanopore noted that, following positive feedback from potential investors, it now intends to issue approximately 82.4 million new Shares raising gross process of approximately £350 million. The Offer also comprises approximately 41 million existing Shares to be sold by certain existing shareholders, equating to a total Offer size of c.£524 million. An additional c.18.5 million new Shares are being made available by the Company pursuant to the over-allotment option.

IP Group announces that it has realised approximately £84m of proceeds* through the partial sale of its holding in Oxford Nanopore. Consistent with the Group's Capital Allocation Policy, the Board is allocating £15m of this realisation towards buybacks of its own shares, with the balance to be invested into opportunities within the Group's existing business. Including the £20m announced earlier this year, none of which has been utilised to date, a total of £35m is now reserved for buybacks. The buyback programme remains subject to various factors including our shareholder authorities to only buy back shares at a discount to Hard NAV per share. Decisions to repurchase shares will always be undertaken in conjunction with considering other potential investment opportunities for the benefit of stakeholders. The Group will update shareholders on the utilisation of this capital via the relevant regulatory announcements.

Following the sale, IP Group holds 82,062,144 shares (or 10.3% of Oxford Nanopore) which is valued at £348.8 million based on the £4.25 Offer Price of Oxford Nanopore. This represents a realised and unrealised fair value gain to IP Group of approximately £74m*.

Alan Aubrey, Chief Executive of IP Group, said: "We're delighted to see such continued strong global interest in and support for Oxford Nanopore. Since IP Group helped found Oxford Nanopore in 2005, the Company has gone from strength to strength. It is a great example of how IP Group has helped nurture a world-leading company based on scientific research and we're immensely proud of the team's achievements."

Conditional dealings in the Shares are expected to commence on the London Stock Exchange at 08:00 am (UK time) on 30 September 2021 under the ticker "ONT". Admission of the Shares is expected to occur, and unconditional dealings in the Shares are expected to commence on the London Stock Exchange, at 08:00 am (UK time) on 5 October 2021.

The person responsible for arranging the release of this announcement on behalf of the Company is Alan Aubrey, Chief Executive of IP Group.

*net of estimated costs

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Notes for editors

About IP Group

IP Group is a leading intellectual property commercialisation company which focuses on evolving great ideas, mainly from its partner universities, into world-changing businesses. The Group has pioneered a unique approach to developing these ideas and the resulting businesses by providing access to business building expertise, capital (through its 100%-owned FCA-authorised subsidiaries IP Capital and Parkwalk Advisors), networks, recruitment and business support. IP Group has a strong track record of success and its portfolio comprises holdings in early-stage to mature businesses across life sciences and technology. IP Group is listed on the Main Market of the London Stock Exchange under the code IPO.

Group holdings in portfolio companies reflect the undiluted beneficial equity interest excluding debt, unless otherwise explicitly stated.

Important Information

This announcement is not for publication or distribution, directly or indirectly, in or into the United States (including its territories and possessions, any state of the United States and the District of Columbia), Australia, Canada, the Republic of South Africa, Japan or any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction. The distribution of this announcement may be restricted by law in certain jurisdictions and persons into whose possession any document or other information referred to herein comes should inform themselves about and observe any such restriction. Any failure to comply with these restrictions may constitute a violation of the securities laws of any such jurisdiction. Neither this announcement shall form the basis of or constitute any offer or invitation to sell or issue, or any solicitation of any offer to purchase or subscribe for any Shares or any other securities nor shall it (or any part of it) or the fact of its distribution, form the basis of, or be relied on in connection with, any contract or commitment therefor.

In particular, this announcement does not constitute an offer to sell, or a solicitation of an offer to buy, securities in the United States. Securities may not be offered or sold in the United States absent registration under the U.S. Securities Act of 1933, as amended (the "Securities Act"), except pursuant to an available exemption from, or in a transaction not subject to, the registration requirements under the Securities Act. The Shares have not been, and will not be, registered under the Securities Act and there will be no public offer of the Shares in the United States.

ENDS