IP Group plc

Capital raising

10 Mar 2015

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED IN IT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA OR THE UNITED STATES OR INTO ANY OTHER JURISDICTION WHERE TO DO SO MIGHT CONSTITUTE A VIOLATION OR BREACH OF ANY APPLICABLE LAW. PLEASE SEE THE IMPORTANT NOTICE AT THE END OF THIS ANNOUNCEMENT.

THIS ANNOUNCEMENT, WHICH DOES NOT CONSTITUTE A PROSPECTUS OR DOCUMENT EQUIVALENT TO A PROSPECTUS, IS NOT AN OFFER TO SELL OR THE SOLICITATION OF AN OFFER TO BUY ANY SECURITIES AND NEITHER THIS ANNOUNCEMENT NOR ANYTHING HEREIN FORMS THE BASIS FOR ANY CONTRACT OR COMMITMENT WHATSOEVER. SECURITIES MAY NOT BE OFFERED OR SOLD IN THE UNITED STATES ABSENT REGISTRATION OR AN EXEMPTION FROM REGISTRATION AND THE SECURITIES DESCRIBED HEREIN WILL BE SOLD IN ACCORDANCE WITH ALL APPLICABLE LAWS AND REGULATIONS.

THE DEFINED TERMS SET OUT IN THE APPENDIX APPLY IN THIS ANNOUNCEMENT.

Proposed Firm Placing, Placing and Open Offer and Notice of General Meeting

The Board of IP Group announces a share issue to raise gross proceeds of approximately GBP 128.0 million (approximately GBP 124.7 million net of expenses) through the issue of 56,888,888 Capital Raising Shares by way of a Firm Placing, Placing and Open Offer (together the "Capital Raising") at a price of 225.0 pence per share.

The Issue Price represents a discount of 6.6 per cent to the closing middle-market price (as derived from the Daily Official List) of 240.9 pence per share on 9 March 2015.

IP Group will shortly be publishing a Prospectus in connection with the Capital Raising and will convene a General Meeting to approve certain matters necessary to implement the proposed Capital Raising.

Summary

  • The Capital Raising was significantly oversubscribed
  • Issue of 51,111,111 Capital Raising Shares through a Firm Placing and 5,777,777 Capital Raising Shares through the Placing and Open Offer raising gross proceeds of GBP 128.0 million.
  • Qualifying Shareholders are being offered the opportunity to participate in the Open Offer by subscribing for their respective Open Offer Entitlements and Excess Shares under the Excess Application Facility. The Open Offer is intended primarily for the benefit of smaller shareholders – undertakings received from Shareholders ensure that 80.3 per cent of Open Offer Shares are available to meet Excess Applications
  • The Capital Raising will enable IP Group to accelerate its growth by increasing its overall rate of investment in both its current portfolio and in new opportunities in the UK and the US that progress to the post-seed stage
  • The Capital Raising will also provide capital to enable the Group to continue to expand its access to, and provide capital to enable the development of, technology from its partner universities and other premier research intensive institutions, both in the UK and US
  • The Capital Raising will provide capital to fund the continued growth of the Group’s US business
  • The Capital Raising is conditional on the passing of the Resolutions at the General Meeting. If the Resolutions are passed and the other conditions to the Capital Raising are satisfied, it is expected that dealings in the Capital Raising Shares will commence at 8.00 a.m. on 27 March 2015
  • IP Group has also today released its annual results for the year ending 31 December 2014

The Prospectus concerning the Capital Raising will shortly be sent to Shareholders and will also be made available on the Company’s website www.ipgroupplc.com. Further details are set out in this announcement and in the Prospectus. A copy of the Prospectus will be submitted to the National Storage Mechanism and will shortly be available for inspection at: http://www.hemscott.com/nsm.do.

Alan Aubrey, Chief Executive Officer of IP Group, said:

"We believe there is a significant opportunity to continue to accelerate the Group’s growth by increasing our overall rate of capital deployment into our existing portfolio as well as into new early stage opportunities, both in the UK and the US. We remain confident in the prospects for the Group and would like to thank all of our stakeholders for their continued support.”

Readers are referred to the important notice that applies to this announcement. Unless otherwise stated, references to time contained in this announcement are to UK time. This announcement has been issued by and is the sole responsibility of IP Group plc.

For more information, please contact:

IP Group plc
Alan Aubrey, Chief Executive Officer

Greg Smith, Chief Financial Officer

Vicki Bradley, Communications

+44 (0) 20 7444 0050

+44 (0) 20 7444 0050

+44 (0) 20 7444 0062

FTI Consulting
James Melville-Ross/Simon Conway/Victoria Foster Mitchell

+44 (0) 20 3727 1000

Read the full press release