Oracle Corp, the US database giant, is to invest £150mln and become a cornerstone investor in high-flying UK tech group Oxford Nanopore Technologies Ltd when it lists in London next month.
The investment is part of a collaboration between the two companies that will see them work together on new applications in sequencing and genetic analysis using Nano's gene sequencing tech and Oracle's strengths in database and cloud technologies.
Oxford Nanopore confirmed its plans for a listing today and said it intends to raise £300mln in new money through the float alongside a secondary sale by existing shareholders.
Oracle will subscribe its £150mln at the same price as the IPO offer, which will be determined by a bookbuild process, with the admission of the shares currently expected to occur in early October 2021.
London listed IP Group PLC (LSE:IPO) has a 14.4% stake, which it estimates was worth £359mln on 30 June 2021, which would have valued Oxford Nano then at around £2.5bn.
IP Group was the original backer of Oxford Nano, with an investment in 2005 of £500,000 reportedly secured over drinks at a pub close to founder Hagan Bayley’s laboratory.
Nano first moved into DNA/RNA sequencing and real-time data streaming in 2014, with its MinION platform now able to analyse hundreds of requests from sample preparation through to DNA sequence data acquisition.
Alan Aubrey, IP Group's chief executive, said: "IP Group has been with Oxford Nanopore from day one and has actively supported the Company in a number of ways since then in addition to providing capital. We are delighted to see Oxford Nanopore take the next steps on its journey."