Life Science raises £350m in over-subscribed IPO as it plots ‘Golden Triangle’ growth
A real estate investment trust (REIT) Life Science has raised gross proceeds of £350m as it anticipates a stock market debut this week.
New ordinary shares were issued at £0.01 each and Life Science has made an application for 350m shares to be admitted to AIM.
The admission will make it the first London listed REIT focused on UK life science properties.
Life Science said on Wednesday morning that it had received applications exceeding the £350m maximum size of the issue – resulting in a scaling-back exercise.
The company is expected to be admitted to the market on 19 November, with the ticker symbol LABS.
Claire Boyle, chair of Life Science REIT, said: “We are delighted to see such strong support from a broad range of institutional and retail investors for the Issue, the proceeds of which will enable the company to begin investing in an extensive pipeline of projects.
“We welcome all of our new shareholders and look forward to updating them on the deployment of the IPO proceeds.”
The firm focuses on the ‘Golden Triangle’ area of Oxford, Cambridge and London St Pancras.
Assets located close to four of the world’s top ten universities for life science and global life science innovation should ensure strong potential for rental growth, Life Science previously said.
When it announced its intention to float last month, the company said it had identified a £445m pipeline of projects of which around £305m is under exclusivity or in an advanced state of negotiations.
Simon Farnsworth, managing Director of Ironstone Asset Management, the company’s investment adviser, said: “This is the largest London listed UK REIT IPO since 2016 with its success underlining the significant opportunity we have identified in the UK life science property sector, which is not currently represented by a specialist business on the public markets.
“We will now act swiftly to advance the pipeline of income-producing opportunities and exciting development opportunities currently under exclusivity or in advanced negotiations. We look forward to updating the market in due course.”