About the client
Instem PLC is a leading supplier of software solutions to the early development healthcare market. Its solutions are used by organisations, mainly in the pharmaceutical R&D sector, for data collection, management and analysis.
Instem’s portfolio of software solutions increases client productivity by automating study-related processes while offering the unique ability to generate new knowledge through the extraction and analysis of scientific information.
Instem has offices around the world. Its blue chip customer base consists of the leading pharmaceutical, chemical and contract research organisations as well as academic, government and privately funded research institutions worldwide. These include seven of the top ten pharmaceutical and biotech companies such as GlaxoSmithKline and AstraZeneca.
About the deal
Rickitt Mitchell assessed and considered various options for raising funds and simultaneously realising some value for shareholders, including debt and private equity fundraisings. Our assessment of the business led us to believe that Instem would be a strong candidate for an Initial Public Offering (IPO) on the public markets and that this route would best achieve Instem’s and its shareholders goals.
Instem successfully achieved an IPO in 2010 during a period of turbulence in the public markets and was one of only a very few successful IPO’s of trading businesses on either the AIM or main market that year. The IPO also allowed funds to be raised to execute an M&A strategy.
Rickitt Mitchell helped maximise the value placed on Instem and was pivotal in achieving a successful IPO in challenging market conditions, achieving an initial listing with a market capitalisation of £21m. Part of Rickitt Mitchell’s role in this process was to convey the value of the business to the NOMADs and make sure that the pricing of the IPO remained at the right level during the process.
“Neil thoroughly researched all the different routes to raise funding for our M&A strategy, and while the concept of an IPO was initially greeted with scepticism, it has proven to be the perfect decision. Rickitt Mitchell have excelled in our AiM floatation, and in the subsequent market acquisitions.”Phil Reason | CEO | Instem PLC