[Request] Oxford Nanopore IPO

FT reporting London listing second half of the year.

Valued between £4-7b ($5.5-9.6b) with £52m ($68m) sales in 2019. IP Group currently owns 15%.

Only listed competitor is Pacific Biosciences, currently worth $5.4b and on 2020 sales of $78m.

Illumina

Illumina is sequencing but many people consider Pacific Bio and nanopore sequencing to be a different category and ARK expects long range sequencing to take market share from short range.

There are tradeoffs and it’s worth remembering Illumina has a large installed base and that many genomics applications will have been tailored to Illumina processes and workshops. Just one example of this is 10x Genomics which has carved out a whole new sub category of single cell genomics (useful for Cancer where you have bunches of differently mutated cells, you’d want to be able to read the DNA of each cell rather than mixing them up and getting the average DNA), they are an ~18bn market cap company and use Illumina machines
https://support.10xgenomics.com/single-cell-gene-expression/sequencing/doc/specifications-sequencing-requirements-for-single-cell-3

That’s not to say Illumina can’t be supplanted, just that with such an entrenched monopoly position it’s hard to predict how fast the market will change.

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LON:SUPP hold about 4% as well.

Although the estimate valuation at launch is around £5 billion, the potential valuations are as high as £22 billion. Either way, it offers very good returns for its current shareholders.

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How have you landed at 22bn?

As mentioned you can already get exposure through IP Group (LSE: IPO) - it represents a considerable portion of their NAV

ONT are also moving into protein diagnostics so it will take off over the long term

I haven’t but some analysts think so but goes without saying I’d take this with a massive pinch of salt but a takeaway company has a valuation of £8 billion so can’t rule anything out.

It will become clear as we get closer to the IPO.

It’s actually 23billion dollars

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You have to love their minion. They are doing great things.

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Yeah that confused me. The Telegraph are reporting Woodford’s stake got sold during liquidation, but its obviously still listed as a top holding by Schroders.

Yes that’s because Woodford’s failed Equity Income fund, which held a stake in ONT was sold off to Acacia Research (US) as part of a discounted portfolio sale last year.

Schroeder’s UK Public Private Trust (LON:SUPP) formerly Woodford Patient Capital Trust hold around 4% in ONT and it’s their second or third largest holding.

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Thanks for the explanation. Congrats to all holders!