Oxford BioDynamics PLC (LON:OBD), the biotech spun-out of the University of Oxford, got off to a relatively drama-free start on its first day as a public company.
Shares opened at 163p – ahead of the 158p paid by investors in the placing last week – and climbed higher in early deals, peaking at 168p after 30 minutes or so of trading.
It hasn’t had it all its own way though, and has fallen back as the morning progressed to around the 160p mark.
Oxford BioDynamics is focused on epigenetics and its technology analyses biomarkers in the blood to help pharma companies work out which patients are likely to benefit most from a particular drug.
Speaking ahead of the float last week, chief executive Christian Hoyer Millar said: “We are delighted to be joining AIM at such a pivotal time in the company’s development.”
“By further strengthening our balance sheet, we are now ideally positioned to accelerate our growth at a time where we believe that there are significant opportunities for the EpiSwitch platform.”
Of the £20mln raised from its listing, around £7.1mln will find its way to the company, with the selling shareholders receiving the remainder.
The biotech says it will use the cash to fund expansion and enhance its IP portfolio, and it hopes the injection will provide enough working capital for the next two to three years.
Some of the money will also go towards helping Oxford establish a presence across the pond, with the US seen as the go-to market for companies of this ilk.
It recorded a loss of £1mln last year, but unlike some of its peers it is revenue-generating, getting its income through contracts with pharmaceutical groups.