IP Group to raise £55m

It said the placing and open offer will increase the rate of investment in these companies and help it spin out new businesses.

The group has stakes in Yorkshire spin-outs including Avacta, Getech, Tracsis and Tissue Regenix, as well as its smaller business incubator rival, Sheffield-based Fusion IP.

It added the fundraising will also allow it to maintain or increase its stakes through subsequent fundraising rounds.

The issue of 110m new shares at 50p each is a six per cent discount to the closing price on Thursday.

IP Group chief executive Alan Aubrey said: “A number of the group’s portfolio businesses have made excellent recent progress towards achieving key commercial milestones. This proposed equity raise will enable the group to maintain or increase stakes in these post-seed opportunities whilst also increasing its overall rate of investment.

“Strengthening the balance sheet in this way provides the group with greater flexibility to lead investment rounds whilst decreasing its reliance on external capital, thereby ensuring that we are able to maintain significant minority stakes in the most promising opportunities. We remain confident that our strategy will generate significant long-term returns for shareholders”.

The share issue will increase IP Group’s share capital by 43 per cent. It will raise £53.3m after expenses.