London Stock Exchange welcomes Seraphim Space Investment Trust to the Premium Segment of the Main Market
London Stock Exchange today welcomes Seraphim Space Investment Trust (LSE: SSIT) to trading on the Main Market.
Seraphim Space Investment Trust (“Seraphim”) will invest in a diversified international portfolio of early and growth stage Space Tech businesses. The Company is the world's first listed Space Tech fund and is targeting annualised NAV total return of at least 20 per cent. over the long term.
Since launching the world's first 'New Space' technology venture fund in 2016, Seraphim established itself as the 'go to' VC for Space Tech entrepreneurs. It has since become the most prolific specialist Space Tech investment group globally, returning an IRR of 31% since formation.
Led by SpaceX, privately financed companies are advancing radical changes in the $366 bn Space industry, creating a new data and connectivity ecosystem that is about to transform the world. Technological advances are overturning traditional models for operating in Space, as low-cost access to Space becomes a reality with innovations such as reusable rockets
and miniaturised satellites – this revolution is known as “New Space”. The cost of building and launching a satellite has fallen by a factor of more than 100x whilst the demand for space-related technologies is about to increase dramatically in the era of driverless cars, robotics, smart cities and internet of things.
This will unlock US$ trillions in value, with category leaders in each part of the Space Tech market potentially dominating their fields for decades to come. A flourishing ecosystem of privately funded Space Tech start-ups is emerging to address some of the biggest challenges faced by both humanity and business covering a broad range of sectors including insurance, finance, transport, energy, telecommunications, agriculture, and governments.
Seraphim has a seed portfolio of 19 international companies, including a range of businesses now considered to be category leaders, with three of its investments having announced their plans to go public via SPAC transactions. The Company has a deep understanding of its portfolio businesses and the conviction to deploy significant additional capital to support proven teams in addressing their global vision.
Seraphim raised approximately £180 million in an oversubscribed IPO. The Company will also acquire stakes in a further four Space Tech businesses on or before 31 December 2021 upon the completion or termination of pending corporate activity in those assets. Assuming the successful completion of each, Seraphim estimates approximately £70 million of value relating to the assets could be acquired. This implies total gross proceeds for Seraphim of £250 million.
The Company will invest the proceeds into an international portfolio of Space Tech businesses, including through the acquisition of the seed assets.
Mark Boggett, CEO of Seraphim, said: "We are delighted to be listing on London Stock Exchange today. London Stock Exchange is renowned over the world as one of the most dynamic and supportive markets for growth companies and, as a result of our listing, will now be the place to come to for anybody wishing to invest in the fast-growing Space Tech sector.
This sector is now at a major inflection point and Seraphim Space Investment Trust is for the first time offering public market investors the opportunity to get diversified exposure to the private companies leading this exciting investment area. Seraphim is aiming to back the next generation of space entrepreneurs addressing a multi-trillion-dollar market opportunity set to transform all our worlds for the better. We are very grateful to the many investors who recognise this and have backed our IPO."
Deutsche Bank AG and J.P. Morgan Securities plc acted as joint bookrunners. Stephenson Harwood LLP were the legal advisers to Seraphim, and SEC Newgate provided Financial PR support.