Seraphim Space Investment Trust PLC (LSE:SSIT) shares rocketed 29% higher to 33.78p after it confirmed JPMorgan has been appointed to buy back shares and that many of its portfolio companies showed their potential with new funding rounds.
The venture fund focused on space technology, which floated two years ago this month at 100p but recently fell to a low of just over 26p, said the share repurchase plan will see up to 14.99% of its share capital bought back.
It is “not planning on fully utilising this authority”, with the company unable to pay a price for any shares at a share price premium to its own net asset value.
A trading update also revealed that 11 companies in the trust’s investment portfolio have closed investment rounds during the first half of 2023, of which six were made at higher valuations than previous rounds and only one being a ‘down round’.
Most of the funding rounds were led by new external investors, with SSIT participating in two-thirds.
“This positive investment activity demonstrates the continued strength of the portfolio companies and the increasing market recognition of their potential,” it said.