(Alliance News) - Conviction Life Sciences Co Ltd on Friday announced plans to float on the main market of the London Stock Exchange, seeking a premium listing.
Conviction Life Sciences is a closed-ended investment company with a focus on life sciences and medical technology and is managed by Plain English Finance Ltd.
It is targeting to raise GBP100 million through the issue of up to 100 million shares. It also will undertake a placing programme for up to 250 million shares.
An intermediaries offer for retail investors will be run by interactive investor - which is part of abrdn PLC - AJ Bell PLC, Equiniti, PrimaryBid and Jarvis Investment Management.
The initial public offering will raise funds for Conviction Life Sciences to deploy in the "compelling structural investment opportunity" presented by the global life sciences and medical technology markets.
Conviction Life Sciences said that there are a large number of life sciences and medical technology businesses which are "structurally undervalued".
It pointed out that technological progress has already changed the life sciences industry, citing the reduction in time and cost of sequencing a human genome. " This is a sector where science can create significant economic value", it said.
Chair Geoff Miller said: "With more than 200 combined years of financial markets and life sciences experience 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."
The company expects to deliver capital appreciation to shareholders over the long-term by investing in a "conviction portfolio" of life sciences and medical technology businesses, based primarily in the UK, Europe and Australasia.
It will invest in both public and private companies, around 70% and 20% of the total portfolio value respectively. It expects to hold minority positions in between 20 and 40 businesses.
Conviction Life Sciences will target an annualised net asset value total return of 20% over the long-term.
Andrew Craig, founder of Plain English Finance, said: "CLSC has been created to provide investors with a vehicle through which to capitalise on this opportunity to invest in undervalued life sciences companies in these geographic markets. We have a team of highly experienced life science and financial services experts who are unified in this belief and well-positioned to execute against this investment strategy."
By Chris Dorrell; chrisdorrell@alliancenews.com
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