City Therapeutics Raises $200 Million in Nasdaq IPO and Jumps 28%
City Therapeutics priced 11,111,111 shares at $18, the midpoint of its range, raising $200 million, and opened for trading on Nasdaq at $23, up 28%.
City Therapeutics completed an upsized initial public offering on the Nasdaq exchange, pricing 11,111,111 shares at $18 per share, the midpoint of the target range between $17 and $19, raising $200 million, according to Renaissance Capital.
The pricing indicated a market value of about $1 billion on a fully diluted basis. The stock began trading on October 16 under the symbol CTY and opened at $23, up nearly 28%, implying a valuation of approximately $1.19 billion upon listing.
The Cambridge, Massachusetts-based developer works on gene silencing technologies for treatments that target the causes of diseases rather than their symptoms.
Goldman Sachs, Jefferies, Stifel, and Oppenheimer led the offering as joint bookrunners.
What Do These Terms Mean?
Upsized IPO: An offering in which the company increases the number or value of shares above what was originally planned due to high demand.
Listing Price: The price at which shares are sold to investors in the offering before trading begins.
Fully Diluted Shares: Calculating market cap based on all potential shares, including options and instruments that may convert into shares.
Joint Bookrunners: The banks responsible for marketing, pricing, and distributing the shares to investors.
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