Tekcapital shares gained on Wednesday after it announced plans to list its Generative AI portfolio company GenIP on AIM and provide UK-focused investors with the opportunity to gain exposure to a pure play in the rapidly expanding artificial intelligence market.
In a surprise announcement released on Wednesday, Tekcapital CEO Cliff Gross said, “We are excited to announce the forthcoming IPO of GenIP plc. A product of Tekcapital’s technology incubator, GenIP’s Invention Evaluator and Vortechs have been instrumental in commercialising numerous technological innovations, allowing them to develop from a clean piece of paper to operating companies and listed spinouts.”
Investors were evidently encouraged by the news, with Tekcapital shares jumping 10% in the early minutes of trade.
Tekcapital had previously announced plans to launch a Generative AI company. However, shareholders will note that with GenIP, Tekcapital has broken with its traditional model of forming technology companies as private entities and providing growth capital before listing them.
Tekcapital has decided the best approach is to offer GenIP to public markets as soon as possible and provide investors with the opportunity to take a stake in the company in the very early stage of it’s growth story.
Despite only launching its Generative AI services recently, GenIP has won over 40 orders for its AI-powered analytical assessments, which help research organisations judge the commercial viability of new technologies.
According to GenIP’s website, their clients include leading institutions such as Brazil’s National Nuclear Energy Commission CNEN, Fundación Copec UC, and the University of Huddersfield.
“We believe that GenIP’s unique business model offers investors a valuable opportunity to engage with the rapidly expanding Generative AI analytics market and the research institutions and technology companies that fuel much of the world’s innovation,” said Melissa Cruz, CEO of GenIP.
GenIP will be Tekcapital’s second IPO of 2024 after the company listed MicroSalt in February. MicroSalt shares tripled within six months of listing before falling back.