Scynexis lowers IPO expectations
04/03/2014 9:28 AM
04/03/2014 9:29 AM
Drug-development company Scynexis plans to sell its shares at a significantly lower price than previously anticipated in order to make its initial public offering of stock happen.
In a new securities filing Thursday, the Durham company said it anticipates its shares will fetch between $7 and $8. It previously had targeted selling shares at between $12 and $14.
To compensate, Scynexis is planning on selling more shares — 7.3 million shares, up from 4.2 million previously — in order to raise about the same amount of money.
In addition, Scynexis has delayed its public debut, according to IPOScoop.com, which publishes an IPO calendar based on information from underwriters.
The company’s shares previously were expected to begin trading on Nasdaq under the ticker symbol “SCYX” on Thursday. But now the shares are expected to begin trading Friday.
If Scynexis goes public at $7.50 per share, it would reap $47.5 million after fees and expenses. That would rise to $55.2 million if the underwriters exercise their option to purchase an additional 1.1 million shares at the IPO price.
At $7.50 per share, the company’s market capitalization — the total value of its outstanding shares — would be $141 million. Under its earlier IPO plans, the company’s market cap could have exceeded $200 million at $13 a share.
Scynexis doesn’t yet have a product on the market. Its lead drug candidate is an intravenous drug for treating serious and life-threatening fungal infections that is years away from approval.
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