IP Group launches £20m share buyback, shares jump

IP Group surged on Monday as it announced the launch of a share buyback of up to £20m.

The company said that "in light of the prevailing discount" between its share price and its net asset value per share, the board has determined that now is an appropriate time to initiate the buyback.

"The directors believe the current share price discount to NAV significantly undervalues IP Group's portfolio," it said. "They have therefore determined to allocate a proportion of cash realisations to shareholder returns through the buyback programme."

As at 30 November, IP Group - which invests in breakthrough science and innovation companies - had achieved cash realisations of £38m and had gross cash of £235m.

"The board remains committed to making regular cash returns to shareholders from realisations," it said.

In future, these regular cash returns will normally be made in the form of share buybacks when the share price discount to NAV exceeds 20%, it said. Regular dividend payments will be suspended under such conditions, including consideration of any final dividend for 2023.

At 1150 GMT, the shares were up 6.8% at 55.90p.