CAMBRIDGE University has made more than £3m on an investment of just £100,000 that it made seven years ago, after selling its stake in biotech firm Horizon Discovery.
Horizon raised £68m by selling shares on Aim yesterday, well-above the original target of £25m and giving it a market capitalisation of £120m when it joins the market on Thursday.
Cambridge University sold down its entire 3.9 per cent stake, netting a £31.7m windfall – more than 30 times its original investment.
MVM Life Science Partners, Roche Finance and Genentech also sold down their stakes in the firm, appearing on its roster of significant shareholders before the share admission, but not afterwards. Co-founder Dr Chris Torrance, who held a 9.4 per cent stake, has also sold down his holding.
Prominent investors who snapped up stock yesterday included Henderson Global Investors, which now holds a 4.2 per cent stake in Horizon, and Crispin Odey’s Odey Asset Management, which holds 3.3 per cent.
“We are very excited by the enthusiasm shown by over 60 incoming investors and the significant oversubscription for the placing at the top of our target valuation range,” said Darren Disley, Horizon chief executive.