Quantum Exponential IPO: All set for Aquis Stock Exchange launch

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Quantum Exponential IPO: All set for Aquis Stock Exchange launch

 Quantum Exponential IPO: All set for Aquis Stock Exchange launch
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Summary

  • Quantum Exponential to go public on the Aquis Stock Exchange in a first-of-its-kind quantum technology company listing in London.
  • The company has already raised £2.3 million of the £5 million and a pre-IPO fund raising of £2.5 million.
  • Post IPO, Quantum Exponential aims to develop a portfolio of several minority investments in some of the top global quantum technology firms.

Quantum Exponential Limited, a technology firm established to identify investment areas in the quantum computing sector, announced plans to file an application for floating its ordinary shares for trading on the Aquis Stock Exchange Global Market (AQSE). The move would make Quantum Exponential the first-of-its-kind quantum technology company listed in London.

IPO details

Quantum Exponential plans to raise £5 million ($6.9 million) by going public. It has already raised £2.3 million of the £5 million from the existing pool of investors along with a pre-IPO fund raising of £2.5 million. The quantum technology-based company is slated to be admitted to the Access segment of the AQSE in August 2021. The company selected Oberon Capital as its underwriter and broker and Novum Securities as AQSE Corporate Adviser for the floatation.

Rising investor interest in quantum technology

Quantum Exponential is expected to leverage from the increasing quantum computing revenues and rising government support for advanced technologies. The company is aiming to use quantum computing for the development and transformation of several key industries, including manufacturing, healthcare, and artificial intelligence. The company said that public market investors currently were devoid of exposure to the technology.

Quantum Exponential will focus exclusively on quantum technologies such as quantum sensing, quantum communications, quantum metrology, and quantum computing software and components, which can help investors reap benefits such as superior market access, professional due diligence, and portfolio selection, and technical expertise. Quantum Exponential’s intention of floating its shares on the IPO thus provides an exciting opportunity not only to investors but also for the development of London as a major technology centre. Quantum Exponential thus would enable institutional and private investors participation in a high-risk high-rewarding innovative technology start-up sector that was relatively unavailable for retail investors in the past.

Investment strategy

Through its IPO, Quantum Exponential's intends to develop a portfolio of several minority investments in top global quantum technology firms, primarily based in NATO-allied nations. In this direction, the company has screened about 175 quantum companies and more than 60 startups, which are in line with the company’s investment strategy. The company aims to develop an initial portfolio comprising 8-10 investments, with each adding value between £100,000 - £500,000. Quantum Exponential secured an option to take over a stake in Arqit Limited, which is slated to go public on NASDAQ in the next few months, with a tentative $1.4 billion pro forma equity valuation.

Role of COVID-19 in driving up quantum technology interest

COVID-19 pandemic has played a major role in forcing businesses to accelerate their adoption of new technologies for digital transformation. According to Accenture, over 80% of large companies in the UK are ramping up their quantum computing capabilities. This has also helped in driving the interest of investors in quantum computing. The technology is being tested for new product and service development and is expected to revolutionize computing efficiency as well as the ability to solve complex business problems that cannot be solved using conventional computing systems.

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