The Abingdon Health IPO is set to happen in early December as the company looks to appeal to a broader range of investors interested in the continued demand in the COVID-19 testing space.
A schedule one notice filed on 19 November reveals that the date it is planning to go public is in early December. These are announcements that are usually filed at least 10 days before a company goes public.
Previously, Sky News had claimed that Abingdon Health was looking to raise £20m from the public offering subject to interest from investors. Now it appears that there is interest and they have given the green light to the IPO.
What does this mean for investors? COVID-19 tests will be in demand…
Investors in Omega Diagnostics will be particularly interested in Abingdon Health going public.
As the lead partner in the UK Rapid Test Consortium, Abingdon Health is who the government contracts with to supply the AbC-19 rapid test to detect COVID-19 antibodies. Going public is a clear sign of the continued expected demand for the test from the UK Rapid Test Consortium and this is where its equity story plays on:
“The Company has developed and is manufacturing the AbC-19TM Rapid Test, an antibody test for Covid-19 indicating whether a person is generating IgG antibodies to the spike protein of the SARS-CoV-2 virus. The Company is also working with three customers to transfer their Covid-19 antigen tests to manufacture, and is manufacturing a component of a rapid PCR (polymerase chain reaction) test.
The Company also produces lateral flow tests covering non-Covid-19 applications in areas such as self-test HIV, equine infection, human fertility, blood cancer and other infectious diseases across the healthcare sector as well as other areas such as fuel contamination in the aviation sector and testing for water contaminants.”
Omega Diagnostics CEO Colin King has confirmed that there are opportunities to sell the test beyond the UK and this will also generate higher margins for the consortium who all have a share in the profits (Omega Diagnostics Q&A: ready to seize the significant opportunity ahead).
Likewise more broadly as the IPO looks to be pushing on, it is clear that there is continued demand from investors in COVID-19 testing stocks.
Abingdon Health also has a manufacturing agreement with Avacta (referred to in the above) and you will see reference to a PCR test in its equity story which will be taken as a general positive by investors in Novacyt.