Investors Scrambled to Buy This Biotech IPO
In a market that's been tough on initial public offerings (IPOs) by companies that aren't making profits, one industry stands out as having some successes recently: biotechnology. Revolution Medicines (NASDAQ: RVMD), a clinical-stage biotech that's working on treatments for difficult-to-treat cancer indications, raised its offering price above its initial target range, and shares still soared on their first day of trading on Feb. 13.
Revolution offered 14 million shares at $17 per share, raising $238 million before expenses after originally announcing its intention to raise only $100 million. Investors snapped up the shares, bidding the price up a whopping 70% on the first day of trading. Assuming the underwriters exercise their option to buy more shares at $17, the company now sports a market capitalization of $1.7 billion.
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Source Fool.com
