LONDON, UK: Conviction Life Sciences Company Limited (CLSC) introduced the launch of its preliminary public providing (IPO) together with an Intermediaries Offer. The firm is seeking to list on the Premium Segment of the Official List of the FCA and to start buying and selling on the main market of the London Stock Exchange.
Conviction Life Sciences is targeting gross proceeds of as much as £100 million through the issue of as much as 100 million Ordinary Shares by way of the Initial Placing, the Offer for Subscription, Direct Subscriptions and the Intermediaries Offer at 100 pence per Ordinary Share.
Conviction Life Sciences is additionally undertaking a placing programme for as much as 250 million Ordinary Shares (less the variety of Ordinary Shares issued pursuant to the Initial Issue) (the Placing Programme).
Interactive Investor, AJ Bell, Equiniti, PrimaryBid and Jarvis Investment Management have been appointed as intermediaries.
CLSC is a newly established closed-ended funding firm managed by Plain English Finance Limited. The Initial Issue will raise funds for the Company to deploy inside the compelling structural funding alternative that the Directors believe is presented by the worldwide life sciences and medical technology markets.
Key Information and Investment Highlights
- The Board and the Investment Manager have greater than 200 mixed years of monetary markets and related life sciences experience.
- The Company’s funding goal is to ship capital appreciation to Shareholders over the long-term by investing in a conviction portfolio of life sciences and medical technology businesses, based primarily inside the UK, Europe and Australasia.
- CLSC will make investments in each Publicly Traded and Private companies – c. 70% and c. 20% of the total portfolio worth respectively.
- CLSC will goal an annualised Total NAV Return of 20 per cent over the long-term.
- CLSC expects to carry minority fairness positions in between 20 and forty companies with impact from the date falling six months from Initial Admission.
- The portfolio will search publicity to a various set of technologies, together with (but not restricted to) diagnostics and therapeutics, in addition to pharmaceutical services businesses. Platform applied sciences (where the mental property has the ability to address a quantity of diseases or in any other case create a quantity of assets) will generally be preferred.
- The Investment Manager will look to make investments in companies that address a really sizeable market or which have merchandise with scope to be first or best in class.
- The Investment Manager will search to assemble a portfolio of investments such that there’ll be a variety of clinical and commercial inflection factors inside the portfolio as a whole in any given quarter.
- Life science companies serve large and excessive growth markets with extremely effective tailwinds. At the finish of 2021, the highest 701 biopharma companies inside the world had grown in worth to US$5.5 trillion, whereas global pharmaceutical revenues for 2021 were US$1.42 trillion.
- Notwithstanding this market size and growth potential, the Investment Manager believes there are a big variety of life sciences and medical technology companies that are structurally undervalued, particularly inside the United Kingdom, Europe and Australia.
Geoff Miller, Chairman of Conviction Life Sciences said: “Conviction Life Sciences is seeking to present investors with publicity to a broad portfolio of exciting, fast-growth companies the place the Investment Manager believes there is proof of significant undervaluation. With greater than 200 mixed years of monetary markets and life sciences expertise between the Board and the Investment Manager, the Directors of CLSC have confidence that we have established a well-positioned team to capitalise on this opportunity.
We intend to make investments in as much as forty companies serving very sizeable markets that are addressing global factors relating to greater than simply healthcare. Biotech can and can have an enormous impact on agricultural manufacturing and clear energy generation for example, which could go a lengthy way to addressing environmental degradation and local weather change.”
Andrew Craig, Founder of Plain English Finance Ltd, Investment Manager, said: “We believe that the chance to make investments in life science companies, particularly inside the UK, Europe and Australia, is compelling. This is because we believe that there’s a structural alternative which has led to quite a few companies being considerably undervalued.
“As a result, CLSC has been created to present investors with a vehicle through which to capitalise on this chance to make investments in undervalued life sciences companies in these geographic markets. We have a team of extremely skilled life science and monetary services experts who’re unified on this perception and well-positioned to execute against this funding strategy.
“We believe that biotech is a burgeoning theme, primarily due to the exponential tempo of scientific progress and since many of our biggest remaining challenges as a species concern organic systems.
“With this in mind, we plan to make investments in a portfolio of Publicly-Traded and Private businesses. In doing so, we aim to assist drive improved affected person outcomes and wealth creation, and with the potential for a quantity of worth catalysts throughout our intended portfolio, we believe we can ship compelling returns over the long-term.”