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Oxford Nanopore IPO

How to trade on Oxford Nanopore Technologies

Oxford Nanopore Technologies is a provider of rapid Covid-19 tests to Britain’s national health service (NHS). Find out more about the company’s plans and recent financials, and how to get alerted for Oxford Nanopore’s IPO, which is expected to take place in October 2021.

UK flag logo
FCA regulated
FSCS logo
Segregated funds
LSE logo
LSE listed

October 2021

Oxford Nanopore IPO date

£3.8bn

Oxford Nanopore valuation

Between 375p-450p

Share price

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When is Oxford Nanopore’s IPO date?

An official date for the IPO hasn’t yet been released but it is expected to take place in early October, according to Bloomberg. The company will be listing on the London Stock Exchange (LSE).

Keep an eye on other upcoming IPOs for the year or sign up below to receive a notification when Oxford Nanopore Technologies debuts on the stock market.

What was Oxford Nanopore’s role throughout Covid-19?

Oxford Nanopore Technologies is a British biotech start-up and corporate spin-off from the University of Oxford. The company focuses on the field of genomics and in particular, DNA and RNA sequencing technology.

Since the start of the Covid-19 pandemic in 2020, the company has focused on tracking Covid mutations, which helped it to rise to global prominence. The company’s DNA sequencing devices are used to identify and track the spread of variants across the world. Oxford Nanopore machines have been used in 85 countries to track the changes in the virus and have sequenced about 18% of all coronavirus genomes globally.

Oxford Nanopore share price and valuation

The company will price its shares between 375p and 450p.

The company was last valued at £2.4bn in May 2021 when it completed a round of fundraising. The firm secured £195m from investors like M&G, IP Group and Wellington Management. Chinese tech conglomerate Tencent also reportedly holds a stake in Oxford Nanopore. However, analysts at Jefferies, which is one of the underwriters for the IPO, predict that it could be worth up to £3.9bn, as it would have “scarcity value” on the London stock market (increased value due to a limited supply), rather than choosing the NYSE or Nasdaq.

How to trade on Oxford Nanopore’s IPO

1. Register with CMC Markets

You can trade on 9,000 shares within our product library, including Oxford Nanopore’s competitors and the new listing when it’s available.

2. Choose your product

Spread betting is our most popular product, and it is tax-free in the UK and Ireland*, while share CFDs do not require you to pay stamp duty and are available globally.

3. Pick a strategy

Choose whether you want to go long (buy) or go short (sell). Please note that some trading restrictions may apply on initial trading.

4. Add risk-management

Controls such as stop-loss orders can help to mitigate risks within the often-volatile share market.

An overview of Oxford Nanopore Technologies’ financials

In its IPO prospectus, the company claimed that it has made a gross profit of £26.9m in the first half of 2021, with a gross margin of 51%. Last year, Oxford Nanopore more than doubled its 2019 revenue of £52m to £113.9m, but also reported operating losses of £73.1m.

This comes after the company spent a considerable amount of investment in research and development and new manufacturing facilities. The company hasn’t yet made a profit and this may take some time, with Jefferies analysts predicting the company to reach profitability in 2026.

Oxford Nanopore’s primary revenue stream comes from universities and laboratories conducting scientific research. However, 2020 was seen as a pivotal year for the business, as Oxford Nanopore was awarded multiple UK government contracts totalling up to £144m.

Please remember that past performance is not a reliable indicator of future results.

Why may investors be interested in Oxford Nanopore’s IPO?

The company has expressed interest in listing on the London Stock Exchange rather than a US-based exchange, which are usually the preferred pick for biotech and life science companies​. This may help to inject more optimism into the UK’s stock market, which has seen some flops (such as Deliveroo) within the past year.

Analysts at Jefferies have pointed out the growth potential for the business, comparing it to US-based genomics company Illumina, which has a $68bn valuation. Whereas Illumina’s genome sequencing can only identify the order of 200-250 bases at once, Oxford Nanopore’s record so far is four million bases. This suggests that the company could supersede the value of its peers in the future, if it expands it business like Illumina.

The company is building on its business model as it plans to move into the applied genomics market, including in pharmaceuticals, food, water safety and agriculture, according to the Financial Times. This is on top of the DNA sequencing market, which is already worth $7bn.

What are the risks of Oxford Nanopore’s IPO?

Oxford Nanopore represents almost half of Neil Woodford’s new Cayman-based fund, according to Investment Week, who previously backed the biotech in his equity fund before it imploded in 2019, leaving administrators to sell the original stake off in 2020 at a fraction of the current valuation. This may leave some investors whose money is trapped in Woodford’s old fund feeling disgruntled, as they will miss out on the upcoming IPO.

At the moment, the company’s machines are more expensive and less accurate than some of its competitor’s technology, but analysts are predicting that this price gap will close, based on the history of genome sequencing.

Oxford Nanopore Technologies has warned that this year’s revenue growth may be affected as sales of Covid-19 tests drop, following the global vaccination programme. However, it expects its life sciences sales to offset the 72% decline in Covid testing revenue, which usually earns the company approximately £16.7m.

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FAQS

Who are the underwriters for Oxford Nanopore’s IPO?

Investment banks Jefferies and Berenberg are reportedly working together as the underwriters for Oxford Nanopore’s initial public offering (IPO).

How can I be notified about Oxford Nanopore going public?

If you’d like to be notified when Oxford Nanopore has completed its IPO and the stock is available to trade on, on our platform, you can enter your email address into the sign-up box above. Alternatively, open an account with us and register for trading alerts, which you can choose to receive via email, SMS or push notification.

What other biotech stocks are having an IPO?

A number of biotech and life science companies have debuted on the stock market in 2021, including Candel Therapeutics, Vaccitech, Recursion Pharmaceuticals and Verve Therapeutics. Keep an eye on upcoming IPOs that may fall within a similar sector.

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

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