Yesterday, KaloBios Pharmaceuticals Inc. (NASDAQ:KBIO) increased the amount it hopes to raise in its initial public offering, according to the amended S-1 filling with the Securities and Exchange Commission.
The company said it plans to sell 9.48 million shares for between $8 and $9 a share, valuing the deal at as much as $85.39 million. The company previously filed with the SEC that it planned to sell 3.85 million shares at between $12 and $14 a share, for a maximum deal size of $53.9 million.
Primary Cause to Revision
KaloBios boosted the size of its offering after two other health-care IPOs over the past week have posted double-digit percentage gains on Day One.
On Tuesday, biopharmaceutical company Stemline Therapeutics Inc. (NASDAQ:STML) raised its deal size and still managed an 18% first-day rise. Further, last week, LipoScience Inc. (NASDAQ:LPDX) gained 16% on its first day trading.
Management at KaloBios realized the immediate return from their IPO will likely be higher based on the past two similar companies IPO around this time.
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