[ad_1]
On Wednesday, the pharmaceutical company Gossamer Bio, specializing in immunotherapy, which had filed a record in December, amended the registration of its IPO S-1, stating that it would sell 14.4 million shares for $ 16 each, which would raise $ 230 million. Under the SEC's regulations, its IPO registration would automatically come into effect after 20 days, without any additional regulatory approval being required.
Analysts believe that it is risky to ignore the traditional pricing process of IPOs and list the shares without SEC authorization. In deposing, Gossamer essentially bet that the government would reopen its doors before the expiration of the 20-day period; a bet could now pay off.
"Now that the SEC is open for the next few weeks, (the company) will be discussing with it to move forward sooner than the 20-day road," said Kathleen Smith, co-founder and director of research firm Renaissance Capital IPOs. . , adding that it is likely that Gossamer will set its price through the traditional pathway here next week.
Gossamer Bio, which has six treatments at the beginning and middle of the clinical research phase, announced a net loss of $ 108 million for the first nine months of last year, according to its regulatory statements. If the company expects to become public after February 14, it will have to reform its financial results to include the 2018 annual results, which could delay its IPO for several months.
With only a temporary reprieve at closure, time is running out for other companies wishing to go public.
"There is going to be a hurry out of the door," Smith said. "This could turn the market into a buyer's market more than a sellers' market," she added, adding that "this could very well benefit investors."
Source link
