Edison Investment Research - IP Group (IPO) IP Group - Record exit underpinning the NAV

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Edison Investment Research

Richard Williamson

IP Group - Record exit underpinning the NAV

IP Group’s realisation activity has picked up notably in the months leading up to the company’s interim results publication in September, encouraging the company to increase the current buyback programme by £10m to £30m. Subsequently, IP Group agreed to sell the AI-powered financial crime detection business Featurespace to Visa. The exit will result in £134m in realisation proceeds at a 70% uplift to end-2023 carrying value, part of which was recognised in the H124 results, translating in a broadly stable value of IP Group’s private holdings. The de-rating of listed Oxford Nanopore (ONT) was therefore the major driver behind IP Group’s 9% NAV fall in total return (TR) terms in H124 to 104.7p, though nearly half of the ONT share price fall was reversed post end-June 2024, assisted by its half-year trading update and the Novo Holdings investment.

11/10/2024 1 EN

Underlying

IP Group

IP Group is focused on identifying intellectual property (IP), nurturing and building businesses around such IP and then providing capital and support along the journey from cradle to maturity. As of Dec 31 2016, Co.'s portfolio comprised holdings in 90 companies across the four sectors in which Co. operated: IP Healthcare; IP Tech; IP Cleantech; and IP Biotech. Co. is organized into three operating segments: the commercialization of IP via the formation of long-term partner relationships with universities; the management of venture funds focusing on early-stage U.K. technology companies; and the in-licensing of druggable intellectual property from research institutions.

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GB00B128J450 London Stock Exchange United Kingdom

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Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

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Analysts

Richard Williamson

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IP Group - Record exit underpinning the NAV

IP Group - Management sees positive portfolio momentum

IP Group - Novo Holdings invests in Oxford Nanopore

Ocean Wilsons Holdings - Confirmation of interest in Wilson Sons holding

Centaur Media - Tough trading backdrop persists in H2

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