Exscientia, Dundee Spin Out, raises $304m in IPO

Edinburgh-based Frontier IP, a specialist in commercialising university intellectual property, said on Friday its portfolio company Exscientia plc has announced the pricing of its initial public offering (IPO) on the Nasdaq of 13.85 million American Depositary Shares (ADSs) at a public offering price of $22 per ADS.

Exscientia, an AI-driven drug discovery firm, was originally a spinout company from the University of Dundee and now has offices in Oxford, Dundee, Miami and Osaka.

Frontier IP said Exscientia raised gross proceeds of $304.7 million.

In addition, Exscientia announced the concurrent sale of an additional 7,272,727 ADSs at the initial offering price of $22.00 per ADS, for gross proceeds of $160.0 million, in private placements to SVF II Excel (DE) LLC, or Softbank, and the Bill & Melinda Gates Foundation,” said Frontier IP.

“The offering is expected to close on or about 05 October 2021 subject to customary closing conditions and the ADSs of Exscientia are expected to begin trading on the Nasdaq Global Select Market on 01 October 2021.

“Each ADS represents one ordinary share in Exscientia …

“From admission, Frontier IP will be interested in 1,564,800 ADSs in Exscientia.

“Based on the initial public offering price of $22 per ADS, Frontier IP’s holding is valued at $34.4 million.”

Exscientia recently announced a $70 million collaboration with the Bill & Melinda Gates Foundation to develop anti-viral therapeutics against Coronavirus and other viruses with pandemic potential.

Exscientia said in a statement: “Exscientia plc (Nasdaq: EXAI), an AI-driven pharmatech company committed to discovering, designing and developing the best possible drugs in the fastest and most effective manner, today announced the pricing of its upsized initial public offering in the United States of 13,850,000 American Depositary Shares (‘ADSs’) representing 13,850,000 ordinary shares at an initial public offering price of $22.00 per ADS, for total gross proceeds of approximately $304.7 million.

“All ADSs sold in the offering were offered by Exscientia.

“The ADSs are expected to begin trading on the Nasdaq Global Select Market on October 1, 2021 under the ticker symbol ‘EXAI.’

“In addition, Exscientia has granted the underwriters a 30-day option to purchase up to an additional 2,077,500 ADSs at the initial public offering price, less underwriting discounts and commissions.

“The offering is expected to close on or about October 5, 2021, subject to customary closing conditions.

In addition to the ADSs sold in the public offering, the company announced the concurrent sale of an additional 7,272,727 ADSs at the initial offering price of $22.00 per ADS, for gross proceeds of $160.0 million, in private placements to SVF II Excel (DE) LLC, or Softbank, and the Bill & Melinda Gates Foundation.

“The sale of these ADSs will not be registered under the Securities Act of 1933, as amended, and will be subject to a 180-day lock-up agreement.

Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC, BofA Securities and Barclays Capital Inc. are acting as joint book-running managers for the offering.”

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