Biotech company Septerna is coming to NASDAQ with a listing valued at $288m. The company is listing 16m shares on NASDAQ at $18. An additional 2.4m shares in being made available over the next 30 days at the public offering price.
Septerna is a specialist in G-protein coupled receptors (GCPRs) and has managed to create a small molecule called SEP-786 that can be used to help hypoparathyroidism sufferers by creating an oral treatment rather than the current lifelong injections they need.
The IPO was originally priced in the $15-17 range, but was raised to $18 due to investor enthusiasm. The listing is being taken as a sign by underwriters that investor enthusiasm for biotech is back. The clutch of biotech IPOs that have hit the US market over the last few weeks have all been upsized due to investor demand.
Note however that Septerna has yet to deliver clinical trial data – core product SEP-786 is still in Phase 1 trials. That said, the company has a platform for cutting edge GCPR R&D in small molecule drug development which has a broad range of applications – e.g. within the field of immunology. Septerna has also successfully raised pre-IPO funding, including a $150m Series B last year.
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Swiggy cuts India IPO valuation
India’s food delivery giant Swiggy is cutting its hefty IPO valuation, sources close to the company have been telling the press. Swiggy was looking at a massive $15bn IPO in India in November, but we understand this is now being trimmed to between $12-13.5bn. This is still going to be huge and will likely be India’s second biggest IPO this year after Hyundia India, which went live last week.
Swiggy underwriters are blaming market volatility and a recent correction in Indian stocks for the decision. This could potentially leave more upside on the table for investors who pick up shares in the IPO. The worry surrounds four straight weeks of losses for India’s Nifty 50 blue chip index.
The Hyundi India deal, which was much anticipated on Mumbai trading desks for months, saw stock drop 7.2% on its market debut last week. Swiggy is being backed by Softbank and Prosus, and currently aiming for an IPO in mid-November.
Horizon Robotics ignites dormant Hong Kong IPO market
Chinese autonomous-driving specialist Horizon Robotics hit the Hong Kong market, with a successful raise of $696m. This made it easily the biggest IPO in Hong Kong this year. The retail portion of the deal was covered more than 34 times, according to brokers.
Banks in Hong Kong have been watching the deal closely over the last few weeks as the IPO was seen as an important barometer of investor sentiment. The Hong Kong stock market has been in dire need of some good news.
The Horizon Robotics deal came hard on the heels of China Resources Beverage, which managed to finalise a new share sale worth $650m in Hong Kong. The two deals have the potential to re-ignite the Hong Kong market which has seen a lengthy slump in new listings.
Four cornerstone investors shouldered the Horizon Robotics IPO, including Alisoft China and Baidu.
