An investor in snack subscription service Graze and specialist pet food supplier Tails.com plans to join AIM on 15 June. Draper Esprit will float at 300p per share and be valued at £122 million on admission to the stock market.
The venture capital specialist tried and failed to float last year, apparently delaying its IPO as a result of uncertain market conditions despite investor appetite supporting the decision.
A spokesperson for Draper Esprit says: ‘The company engaged in some pre-marketing in late 2015 and despite significant investor interest, it was felt that market conditions weren't right at that time as there was much uncertainty and volatility.
‘They approached investors again in May of this year and have received significant support for their investment approach and have now announced a successful IPO raising with new institutional investors and existing partners.’
Major shareholders will include Neil Woodford-owned Woodford Investment Management, as well as Irish state fund NTMA.
CASH TO INVEST
Draper Esprit has now raised £74 million, while a further £5 million will go selling shareholders. Of this money, £40 million will be spent on buying a portfolio of 24 investments that focus on consumer and enterprise technologies, hardware and digital health.
It will also spend £29 million on primary and secondary investments, including putting more money into some of the companies in the aforementioned portfolio being acquired.
The portfolio includes stakes in consumer reviews website Trustpilot and technology group Movidius which earlier this week (7 Jun) won a deal to provide electronics group Lenovo with processing units for virtual reality products.
Draper Esprit currently manages four EIS funds, which it hopes to grow alongside the primary investing business. It also managed three funds being run down. There are 19 company investments remaining in these funds and 67 company investments already sold.
The company will be admitted to the stock market under the ticker GROW.