The company — which was established by former Elan executives and counts UK-based Woodford Investment Management and the Ireland Strategic Investment Fund (the former National Pensions Reserve Fund) as its cornerstone backers — debuted yesterday on the Irish Stock Exchange’s junior market, the ESM.
Malin’s initial funding expectations have been surpassed, with its IPO raising €330m, just above the top-end of management’s initial expectations of anywhere between €275m and €325m. The company’s share price closed at €10.60 yesterday, after opening at €10 and rising, at one point, as high as €10.77.
Malin has grown out of Dublin-based firm Brandon Point Industries, which is run by former Elan executive John Given. Other former Elan senior executives — including former CEO Kelly Martin and chairman Bob Ingram — sit on its board of directors.
The company intends to invest in life science firms who see trade sales or IPOs as premature moves, and has nearly ten targets already identified.
An initial €100m of investment will cover these, with a further up to €130m available in follow-on investment options. Malin will also seek to make a number of further acquisitions and investments after its flotation.
John Given said last week the alignment of Irish and international investors “will help us achieve our goal of creating value for shareholders by building a globally significant life sciences company, with world-class scientific and business leadership from our Irish base.”
While Woodford will hold an initial 19.5% stake in Malin, with that likely to rise to 28% on the back of additional investment, the ISIF will hold a 15.4% share, after investing €50m in its first major investment since its establishment at the tail-end of last year.
ISIF director Eugene O’Callaghan said the fund’s investment in Malin meets its remit of seeking a commercial investment return and a significant economic impact from its transactions.
“The commitments we have agreed with Malin demonstrate our investments are designed to stimulate high-quality economic activity, support employment and deliver commercial investment returns,” he said.