Malin rises after €330m ESM debut
Shares in Dublin-listed firm Malin rose by 5pc yesterday as the medical investment group made one of Europe's biggest ever biotech IPOs.
Malin, set up by a number of executives from Irish drugmaker Elan to act as a startup incubator to develop life science companies, opened at €10.50 per share on the ESM market for smaller companies, above the €10 per share issue price.
The Dublin-based company beat its target IPO range of €275m-€325m to raise €330m, topping the £200m UK firm Circassia raised a year ago in the biggest London market biotech debut in years.
Speaking at the launch of the company on the ISE, chief executive Adrian Howd said: "We are well placed to achieve our goals of creating long term value for shareholders and improving patients' lives globally by building a leading international life sciences company with world class scientific, medical and business leadership from our Irish base."
Chairman John Given said that the company decided to proceed with an IPO on the ESM as "we believe that as an Irish company Malin should have an Irish listing".
He added that the ESM "is an ideal exchange for our Irish, European and global investor base who have participated in the offering and who share our long-term vision for Malin".
Malin is an offshoot of life sciences strategic management company Brandon Point Industries, set up by Elan boss Kelly Martin last January.
Malin was established by a number of former executives of Irish pharmaceutical firm Elan, which was sold for over €6bn in 2013. These include Mr Martin and former chairman Bob Ingram.
Among the investors in the company is the Ireland Strategic Investment Fund. The body has sunk €50m into the firm for a 15pc stake making it the second largest shareholder.
The investment is the first completed by the ISIF since it was formally established in December 2014 with €7.2bn from the defunct National Pension Reserve Fund.
Under the terms of the €50m deal, Malin has committed to investing €150m in Irish life sciences companies, or firms with significant operations in Ireland.
It has also pledged that ten of the companies in which it invests will employ at least 200 people in Ireland on a full-time basis over the next five years. Besides the ISIF, Malin also has many other high profile investors including billionaires and wealth funds.
Three sovereign wealth funds, as well as US billionaire James Goodnight, have taken stakes in the business.
One of the most prominent investors is UK financial guru Neil Woodford, who previously ran one of the largest funds in Britain and is the largest stakeholder in the company. He was also previously an investor in Elan.
Speaking at the company's pre-IPO launch, Mr Given hailed Mr Woodford's involvement in the firm, saying: "We see the Woodford investment in Malin as a hugely important endorsement of the Irish healthcare industry generally and its potential to be a real, substantial and very positive presence in the global healthcare industry."
Malin already has €90m worth of investments in seven companies lined up. with a further €130m promised subject to contingent commitments being met.
It will also invest another €100m in a further three to five other biotech or devices companies over the nine to twelve months.