Malin nearly fully staked after €42m share placing
Published 17/07/2015 | 02:30
Irish biotech fund Malin is nearly finished its initial investment round after announcing yesterday it has raised €42m in a share placing while investing €73m into UK biotech company Immunocore.
Speaking to the Irish Independent, Malin chief executive Adrian Howd said the firm, which was initially targeting 12 investments, has now made 11 and expects to have a full investment portfolio by the end of the year.
He also said that the company is currently well funded, and will not look at raising any more capital in the near future.
The €73m investment is part of a larger $320m (€294m) financing round for Immunocore, in what is reported to be Europe's largest ever Series A life sciences financing.
The Oxford-based biotech company said it will use the proceeds to accelerate its pipeline of new medicines it calls ImmTACs, next-generation cancer drugs that fight tumours in ways antibody drugs cannot.
Malin led the round with UK investment guru Neil Woodford, who is also a major backer of the Dublin-based fund.
The investment will be financed by Malin's own cash reserves, which received a €42m boost yesterday in a placing of just under 4m new ordinary shares, which represents 10pc of the firm's conditional enlarged issued share capital.
The placing, which primarily tapped eligible existing institutional shareholders, closed yesterday.
Mr Howd said that the fund is almost fully invested, and now plans to focus on developing its assets.
"Immunocore is our 11th investment and we said at the time of the IPO that the perfect amount is about 12 [so] it is fairly safe to assume that we are approaching the end of the first phase.
"We would expect to be done within the year," he said.
Regarding the placing he said: "I didn't think we would do it so soon [but] it was a combination of wanting to get involved with Immunocore and wanting to keep some capital. We are in great shape for funding now so it [another raise] is not something we would expect to do in the short term."
He said Malin is looking to emphasise the merits of locating operations in Ireland to the businesses that it has backed.
"Each company has its own specific agenda but we have been very clear regarding the merits of Ireland [as an operational location] for various reasons as we had great success here with our IPO."
In March Malin raised €330m after listing on the Irish Stock Exchange in one of Europe's biggest ever European stock flotations.
Three sovereign wealth funds, as well as US billionaire James Goodnight and the Irish Strategic Investment Fund, have stakes in the business.
Prior to its initial public offering, Malin had committed €100m to seven firms, from a US disinfection technology company to a pan-African distributor, with a further €130m promised subject to contingent commitments being met.
Shares in Malin closed up 1.1pc at €11 yesterday.