The Trajan Group Holdings (ASX: TRJ) share price has been a strong performer since its IPO earlier this month.
Since hitting the ASX boards on 7 June, the shares of the global developer and manufacturer of analytical science instruments, devices and solutions are up an impressive 38% from their listing price.
Based on the current Trajan share price, the company now has a market capitalisation of just over $300 million.
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What is Trajan?
Trajan was established in 2011 and is a global participant in the analytical science instrument and device industry.
According to its prospectus, it is a purpose led business that aims to enrich human wellbeing through the design, manufacture and supply of products and solutions that enhance scientific measurement.
Trajan's precision componentry and solutions are used in the analysis of biological, food, and environmental samples across a variety of segments that impact human wellbeing. They also have a broad range of life science applications including pharmaceutical, clinical diagnostics, and pathology.
In addition to this, the company has developed a portfolio of innovative technologies and devices which are expected to support the trend towards decentralised, personalised data‑based healthcare.
Why is the Trajan share price shooting higher?
One of the reasons investors have been bidding the Trajan share price higher might be its sizeable and growing market opportunity.
One segment of the global analytical science industry in which Trajan operates is the mass spectrometry market, which was valued at US$4.1 billion in 2020.
End‑user segments within this market include pharmaceutical applications which are projected to grow at a CAGR of 9.3% and environmental testing which is projected to have a CAGR of 6.5% from 2020 to 2025.
For now, it is forecasting revenue of $74.65 million and EBITDA of $9.5 million in FY 2021 and then revenue of $82.5 million and EBITDA of $10.7 million in FY 2022.
Trajan IPO
Trajan raised gross proceeds of $90 million at an offer price of $1.70 per share from its IPO.
Management notes that the proceeds raised will predominantly be used to execute the company's growth strategy. This strategy encompasses both strategic acquisitions of complementary businesses, technologies and processes, and continued investment in its proprietary technology and device portfolio.
Some of the proceeds were also used to give existing shareholders the opportunity to realise a minority part of their investment in the company.
Given its bright prospects and high quality technology, it might be worth keeping an eye on the Trajan share price in 2021.
