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Scottish Mortgage Trust – Investment Update

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Biotech stake spikes tenfold as SPAC listing looms

One of Scottish Mortgage’s portfolio holding that has already offered a tenfold return on capital, is poised to offer a chunky exit as it merges with a special-purpose acquisition company (SPAC). Ginkgo Bioworks, an off-market business that engineers micro-organisms for industrial use, will enter trading in September via a merger with Soaring Eagle Acquisition Corporation, a SPAC launched by former Hollywood executive Harry Sloan.

The deal, which will bring in $2.5bn (£1.82bn) in new capital, values the business at around $17.5bn, making it one of the largest SPAC listings ever. Scottish Mortgage has invested a total of around £44m into just over a million shares in the MIT spin-off since an initial purchase in 2016. Those were valued at around £164m in March, but near trebled between then and June after Ginkgo announced the SPAC merger. The stake is now worth around £450m, 10 times the Company’s original investment.

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