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KaloBios Pharmaceuticals IPO Revision

|Includes: HGEN, LipoScience (LPDX), STML

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.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.