Tekcapital shares jumped on Monday after the university technology investment company announced the pricing details for the Innovative Eyewear IPO, a subsidiary of portfolio company Lucyd.
The IPO is set to raise $7.35m at an offer price of $7.50. Should the offer is fully subscribed, Innovative Eyewear will have a market capitalization of approximately $55m. Tekcapital announced shares would begin trading on the NASDAQ today and the IPO offer would close 17th August.
If the total amount is raised at the offer price, Tekcapital will own retain a 70% stake in Innovative Eyewear, which will be worth be worth roughly $38.5m, through their 100% ownership of Lucyd.
The IPO represents a significant increase in the book value of Tekcapital’s holdings in Lucyd, valued at $27.1 million as of 31 May 2022.
At the time of writing, Tekcapital had a market capitalisation £53m meaning the market is effectively attributing a value of just £21.5m to the rest of their portfolio including London-listed Belluscura, Guident and MicroSalt.
The combination book value of these three holdings totalled $44m, or £35m, as of 31 May 2022, highlighting the deep discount Tekcapital shares trade at compared to their holdings NAV.
Tekcapital are set for another portfolio company IPO in MicroSalt in the coming months which promises to unlock further value in the portfolio.
The Tekcapital share price soared on the news to trade as high as 37p, before easing slightly to 35.8p.