SP Angel analysts have pointed to a ‘highly likely’ rerating of Tekcapital shares on the successful NASDAQ IPO of portfolio company Guident.
Tekcapital founded Guident and retains a 70% stake in Guident, which could be worth tens of millions of dollars after Guident lists on the NASDAQ. Tekcapital currently has a market cap of around £22m.
“The forthcoming IPO of Guident Corp in the US is highly likely to trigger a further re-rating of TEK’s share price,” SP Angel analysts wrote in a note.
“The proceeds from Guident’s IPO will be used to accelerate the deployment of its autonomous vehicle monitoring & control system and its robotics software development. We await pricing and valuation data but see this as a pivotal moment for TEK’s portfolio. On current market prices TEK is trading at an unsustainable 45% discount to NAV per share.”
SP Angel has assigned Tekcapital a price target of 15p, representing a potential 50% upside in the shares. The price target, however, does not take into consideration the potential uplift in Tekcapital’s NAV subsequent to Guident’s IPO.
To derive their price target, SP Angel analysts applied a discount of 15%-20% to Tekcapital’s current NAV of 18p to reflect the average Discount-to-NAV across the investment company sector. SP Angel noted that they await Guident’s IPO valuation to feed this into an updated price target.
In addition to highlighting the disconnect between the share price and NAV, SP Angel also suggested that Guident’s IPO may lead to the repayment of a convertible loan note amounting to $4.5m, which could fund Tekcapital’s operating costs for several years.
Tekcapital portfolio growth
As alluded to by SP Angel, Tekcapital is nearing a ‘pivotal’ moment for portfolio value creation that could see the discount between the value of its Tekcapital shares and its portfolio snap back in line.
Recent half-year results revealed another period of portfolio value growth for Tekcapital as portfolio companies improved revenue generation.
A 10% increase in NAV in the first half means Tekcapital’s net assets grew from approximately $32.7m in 2020 to a record $77.4m by mid-2025, representing a compound annual growth rate of around 19%.
Even as portfolio revaluations moderated in the first half of 2025, Tekcapital maintained a positive half-year ROCE of 7.36%—equivalent to approximately 14.7% annualised—whilst larger rivals IP Group and Frontier IP Group continued to report negative returns, burdened by portfolio write-downs and persistent operating losses.
In contrast, Tekcapital noted that it had reduced its operating costs by 50% compared to the same period in the previous year.
Lower costs will position Tekcapital well for improved cash balances following Guident’s IPO, as Tekcapital will no longer need to support portfolio companies with growth capital. This will be further enhanced should Guident begin to repay the $4.5m convertible due to Tekcapital.