Genomics and bioinformatics firm Lion Bioscience AG of Heidelberg is the latest company to fuel the mini-boom in German biotech initial public offerings this summer.
Its stock enjoyed a successful - albeit delayed - debut Friday on Frankfurt's Neuer Markt and on the Nasdaq National Market. It gained US$10.5 over the issue price during its first day's trading in New York to close at US$49.50, up 26.5 percent. The company raised about US$181 million through the sale of 4,575,375 ordinary shares, each of which is equivalent to one ADR. Its stock trades on Nasdaq under the ticker symbol LEON and under LIO on the Neuer Markt.
Lion originally planned its IPO for July 26 but postponed it because of delays at the SEC, which, said a spokesman for the company, had been flooded with IPO-related work. The oversubscribed offering was priced at EUR44, at the top end of the book-building spread (see BioWorld International, July 12, 2000, p. 7). Some 25.9 percent of the company's stock is in free float following the IPO.
Morgan Stanley Dean Witter & Co., of New York, was global coordinator and book-runner for the transaction. Deutsche Bank AG, of Frankfurt, Germany, acted as joint lead manager. Lion represents the fourth Germany biotech IPO this summer, following those of GPC Biotech AG and MediGene AG, both of Martinsried, and Freiburg-based Gene-Scan Europe AG.