IP Group - Public market falls largely priced in

IP Group has released its H122 interim results, which are in line with guidance given at the end of May. They show an NAV per share of 136.7p, an 18% fall over the six months since FY21 year-end that reflects broader market declines. The reduced NAV was largely driven by falls in the quoted portfolio, principally Oxford Nanopore (87% of £395m decline), with the value of the private portfolio rising by £104m to partially offset the quoted decline. To reassure investors over its valuation approach, management obtained external valuations for five of its largest holdings. IP Group held gross cash and deposits of £236m at 30 June 2022 (net cash of £192m). After the period end, management agreed terms on a £120m debt private placement at an average rate of 5.25%, providing £105m of increased liquidity after repaying £15m of short-dated European Investment Bank debt (of £44m outstanding EIB debt at 30 June 2022). IP Group will draw down 50% of the loan notes in December 2022, with the rest in June 2023.