June 3 (Bloomberg) -- IP Group Plc, a U.K. developer of renewable energy, medical and chemicals businesses using university research, said it will raise 55 million pounds ($90 million) selling new stock to increase investment in start-ups.
The shares will be offered at 50 pence each, a 5.9 percent discount to their closing price yesterday, the London-based company said today in a regulatory filing. The stock rose 1.2 percent today to 53.75 pence as of 4:23 p.m. in London, their highest in a year.
IP Group, which has exclusive contracts for intellectual property with 10 U.K. universities and made deals with Oxford and Cambridge, had gained 75 percent this year through yesterday. That beat both the FTSE Small Cap index, which has increased 1.6 percent, and the WilderHill New Energy Global Innovation Index, which has risen 0.3 percent.
Separately, IP Group said it promoted Financial Controller Greg Smith to become chief financial officer. Smith, who will join the board, was a manager at London-based hedge fund Tarchon Capital Management before joining IP Group in January 2008.
The company, which in April said BlackRock Inc. had acquired a 5 percent stake, has generated an internal rate of return of about 27 percent since 2001, according to the statement. It owns 110 million pounds of stakes in 63 companies.
The stock sale announced today will increase IP Group’s shares outstanding by 43 percent.
To contact the reporters on this story: Todd White in Madrid at email@example.com
To contact the editor responsible for this story: Reed Landberg at firstname.lastname@example.org