Pacific Biosciences of California Inc. raised $200 million pricing its initial public offering at the midpoint of the forecast range in the latest sign that the U.S. IPO market is stabilizing. The shares advanced.
The developer of gene mapping technology sold 12.5 million shares at $16 each yesterday after offering them at $15 to $17 apiece, a filing with the Securities and Exchange Commission and data compiled by Bloomberg show. The Menlo Park, California-based company’s shares climbed 2.8 percent to $16.44 in Nasdaq Stock Market trading today.
The offering came amid increasing signs the U.S. IPO market is rebounding after 54 companies postponed or withdrew sales this year and shares of three of five biotechnology companies that completed deals declined at least 21 percent. Six of the previous seven U.S. IPOs since the start of last week had gained 13 percent or more in their first day of trading.
Biotechnology “IPOs just have a very hard time to get out of the door,” said Josef Schuster, the Chicago-based founder of IPOX Capital Management LLC, which oversees $3 billion. “If they were able to price in the middle of the range, I think that’s positive.”
JPMorgan Chase & Co. and Morgan Stanley in New York led the offering for Pacific Biosciences. The company has lost money since inception and hasn’t generated any revenue from product sales, the SEC filing showed.
Tengion Inc., the East Norriton, Pennsylvania-based company trying to grow replacement organs, has slid 41 percent since its April IPO, while NuPathe Inc., the Conshohocken, Pennsylvania-based developer of treatments for neurological and psychiatric disorders, fell 35 percent since its August offering. Trius Therapeutics Inc. the San Diego-based developer of antibiotics, slipped 21 percent after selling shares the same month.
Pacific Biosciences’ IPO was the second of six offerings scheduled for this week. Mecox Lane Ltd., a Shanghai-based online retailer, gained 57 percent yesterday after raising $129 million.
First Wind Holdings Inc., the Boston-based developer and operator of wind energy projects backed by D.E. Shaw & Co., cut the price range for its offering of 12 million Class A shares today to $18 to $20 each from $24 to $26, according to a filing with the SEC.
ExamWorks Group Inc., the Atlanta-based provider of medical legal services, is selling 10.3 million shares at $16 to $18 each today. New York-based Goldman Sachs Group Inc., Credit Suisse Group AG in Zurich and Barclays Plc of London are leading the offering.
SeaCube Container Leasing Ltd., the Park Ridge, New Jersey- based container leasing company, may raise $135 million today. JPMorgan, New York-based Citigroup Inc., Deutsche Bank AG of Frankfurt and Wells Fargo & Co. in San Francisco are arranging the sale.
Le Gaga Holdings Ltd., a Hong Kong-based vegetable producer, will sell 10.9 million ADRs at $7.50 to $9.50 apiece tomorrow. Charlotte, North Carolina-based Bank of America Corp. and UBS AG of Zurich are arranging Le Gaga’s offering.