Covid-19 testing firm to float on AIM

Source BioScience, a specialist in Covid-19 diagnostics, is to return to the London stock market in a potential £130m initial public offering.

The Nottingham-based firm is understood to be looking to raise between £30m and £35m by joining the London Stock Exchange’s junior AIM market.

First reported by Sky News, a spokesperson for SourceBio confirmed the IPO, adding that a Schedule 1 announcement was likely "in the next few days". Firms intending to list on AIM must make a Schedule 1 announcement at least ten business days before the planned admission date.

It is understood that the proceeds will be used to pay down debt and increase testing capacity.

SourceBio has a contract with the Department of Health and Social Care to provide coronavirus testing, and has already increased testing capacity in recent months to around 5,000 per day.

The firm was listed on the main London market until 2016, when it was taken private in a £63m deal led by majority shareholders Harwood Capital and Continental Investment Partners.

Chief executive Jay LeCoque told Sky: “The IPO on AIM allows us to significantly increase our Covid-19 testing capacity, accelerate earnings growth in our core business and execute on potential M&A opportunities.

“It’s an exciting time for our business, and we are delighted with the keen interest from investors we have seen so far."

Liberum Capital is advising SourceBio.