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Conviction Life Sciences cancels IPO due to ‘market uncertainty’


Conviction Life Sciences Company (CLSC), the Guernsey-based biotech and pharmaceutical investment fund has cancelled its proposed IPO citing “market uncertainty.”

As previously reported, the biotech fund was planning to list on the Main Market of the London Stock Exchange on 16th December 2022, trading under the ticker LON:CLSC and raising GBP100m to invest in a portfolio of 20 to 40 positions in public and private companies across the spectrum of life sciences, targeting technologies in diagnostics, therapeutics, and pharmaceuticals.

The company was planning to invest in both publicly traded and private companies and was targeting an annualised Total NAV Return of 20% over the long-term.

Due diligence

However, as reported, the fund’s management pushed backed the listing date to 31st January 2023, as: “[…] a number of prospective investors have asked for more time in order to complete the due diligence required,” explained the company in December.

At the time, chairman, Geoff Miller said: “We have received positive feedback from a large number of investors to date, including retail investors via the Intermediaries Offer. However, the fast-approaching Christmas break and specific feedback from several potentially significant investors, has persuaded the board that an extension is appropriate. The board continues to have every confidence in the investment manager and the proposition and looks forward to the close of the initial issue in 2023.”

But the new year did not usher in any joy for Conviction, and the fund announced yesterday (30th January) that it was shelving its plans to debut on public markets.

Andy Craig, author and former stockbroker with WG Partners who is heading up CLSC’s listing exercise issued a statement yesterday.

Market uncertainty

In it, Craig said: “Further to the publication of the prospectus on 16th November 2022, the company has decided not to proceed with its initial public offering due to current market uncertainty.”

Although, the statement read, Conviction’s “[…]board has been encouraged by the interest shown to date […] , market conditions continue to be challenging and the board, in consultation with the investment manager, has made this decision in light of the current outlook.”

Any subscription monies received to date as part of the offer will be returned to investors within 10 business days, said the company.

Craig signed off with: “We had some great press coverage and a good deal of investor support in a very tough market but, in the end, we were not able to reach sufficient critical mass to launch a fully-fledged Premium London IPO.”

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This article does not constitute investment advice. Do your own research or consult a professional advisor.

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