Britain’s GW Pharmaceuticals, which is developing the world's first cannabis-based medicine for pain relief, said it has raised £25 million sterling through an initial public offering.
The group - which is developing treatments to help patients suffering from multiple sclerosis, rheumatoid arthritis and cancer - said the issue was significantly oversubscribed and that the size of the placing with institutions had been increased.
The company - which is listing on the junior Alternative Investment Market on the London Stock Exchange - had originally expected to raise £16 million.
A total of 13.7 million new shares were priced at 182p each, valuing the business at £175 million, including the new money.
GW is the latest in a growing number of European biotechnology companies to test the IPO market again after a funding drought since the fourth quarter of 2000.
The firm is developing prescription drugs to harness the medicinal benefits of cannabis and has created a range of products that will be delivered using an under-the-tongue spray, a fast-dissolving tablet or an inhaler.