• IPO, SPAC deal are both options for quantum-computing company
• It could also stay private, with Series D or pre-IPO round possible

Oxford Quantum Circuits (OQC) believes Quantinuum’s initial public offering (IPO) has demonstrated a viable pathway for private quantum companies to access public markets, OQC’s CEO Gerald Mullally told Mergermarket.

Last month, Quantinuum raised USD 1.68bn when it was spun out of industrial conglomerate Honeywell and issued shares on New York’s Nasdaq exchange. The Colorado and Cambridge, UK-based quantum computing specialist now has a market capitalisation of USD 15.3bn.

The positive response to the IPO can help pave the way for other quantum companies to access public market investors, Mullally said.

Quantum computing is designed to exploit phenomena such as superposition, interference, and entanglement in quantum mechanics. Innovators who can do this will be able to develop computing systems that are exponentially faster than classical computers.

Quantinuum is developing both quantum computers and quantum software to solve knotty problems. Meanwhile, Reading-based OQC offers Quantum-Compute-as-a-Service, as well as building quantum computers engineered for competitive advantage by users.

An IPO is among the options for OQC, which continually evaluates its long-term capital strategy, the CEO said. The quantum-computing specialist has no fixed timeline for accessing the public markets, he said, adding that its Series C funding round provides the company with momentum and optionality.

OQC will consider all potential listing venues including Nasdaq, the New York Stock Exchange, the London Stock Exchange and a dual New York-London listing, said the CEO.

The UK-headquartered company is also open to a merger with a Special Purpose Acquisition Company (SPAC) after seeing several peers agree similar transactions this year, Mullally said.

Finland’s IQM Quantum Computers debuted on the Nasdaq following a SPAC merger this month, becoming Europe’s first publicly traded quantum company; while France’s Pasqal and Switzerland’s Terra Quantum have also signed SPAC merger agreements this year.

Earlier this week, this news service reported that the quantum computing sector is emerging as a potential growth area for equity capital markets, with an expanding pipeline of companies considering public listings.

OQC could also choose to remain private for the time being and raise a Series D or pre-IPO funding round to continue financing its growth, said the executive. “Getting the capital strategy right will be critical.”

Last month, OQC raised GBP 260m in an over-subscribed Series C funding round led by Bullhound Capital. The British Business Bank also participated in the fundraise, which valued the target at around USD 1bn.

The company now has sufficient capital runway to deliver its next-generation TITAN quantum computing system, which is expected in 2028, said the executive. OQC provides quantum-computing services to companies working primarily in the financial services and defence and security industries, Mullally said.

The company works in the UK, Japan and the US, and is planning further international expansion including a new quantum development and manufacturing centre in Barcelona, the executive said.

OQC will assess buy-versus-build opportunities and sees potential M&A as an important strategic lever for accelerating growth, said the CEO, without offering further details.

The company was launched as a spin-out of Oxford University in 2017. OQC customer JPMorgan served as placement agent to the company on its Series C.