Nanoform, a Finland-based drug development technology provider backed by insurance firm Mandatum Life, priced its initial public offering yesterday and will raise $76.7m when it goes public on June 4.
The company will issue approximately 20.3 million shares priced at €3.45 ($3.78) and will undertake a dual listing on the Nasdaq First North Premier Growth Markets in Sweden and Finland.
Mandatum Life, financial services firm Handelsbanken Fonder, Avohoidon Tutkimussäätiö, Fjärde AP-Fonden, Keel Capital and funds managed by Sp-Fund Management Company and OP Fund Management Company are making a cornerstone investment of approximately $49.9m in the IPO, subject to certain conditions
Certain shareholders including endowment vehicle Helsinki University Funds will join Nanoform’s co-founders to sell more than 2.3 million shares in the offering.
Founded in 2015, Nanoform has developed technology that enables users to produce active pharmaceutical ingredient nanoparticles directly from solution, controlling the shape of particles and increasing the rate of dissolution.
Mandatum Life contributed to an $11.2m funding round for the company in July 2019 together with pension insurer Ilmarinen Mutual Pension Insurance, Open Care Research Foundation and undisclosed existing backers and assorted private investors.
Mandatum had already taken part in an $8.2m private placement for Nanoform in 2018, according to its IPO prospectus.
Nanoform will use nearly half of the proceeds to increase the number of production lines it runs to 25 by 2025. Proceeds will also fund the recruitment of additional manufacturing, quality control and assurance staff, as well as boosting research and development activities and sales and marketing efforts.
Helsinki University Funds currently owns a 14.1% stake in Nanoform, while co-founder and CEO Edward Hæggström owns 13.9%, Mandatum 11.5%, Ilmarinen 8.1% and Avohoidon Tutkimussäätiö 5.8%. Co-founder Jouko Yliruusi and Kai Falck, senior partner at consultancy FRH Technology Partners, each own 6.9%.
Danske Bank and Skandinaviska Enskilda Banken are joint global coordinators and joint bookrunners for the IPO, while Swedbank, Kepler Cheuvreux and Stifel Nicolaus Europe are also joint bookrunners and Nordnet Bank the subscription placement agent.
Danske Bank has been a 30-day option to purchase up to 2.9 million additional shares following Nanoform’s flotation which would expand its size to about $88m.
The original version of this article appeared on our sister site, Global University Venturing.
