By Steve Gelsi
The cancer drug company closed at $37.17 per share after the $380 million deal was priced at $19 per share
Shares of cancer drug company CG Oncology Inc. nearly doubled in their stock market debut Thursday, another sign that the IPO drought is coming to an end in 2024.
Irving, Calif.-based CG Oncology (CGON) stock closed its first day of trading at $37.17 per share, up 95.6% from and well ahead of its IPO price of $19 corresponds to the opening price of $29 per share.
CG Oncology's debut marked the latest sign of a revival in the IPO market after a dearth of deals in 2023.
Amer Sports and BrightSpring are also scheduled for stock market debuts in the coming days.
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Signs of a strong IPO from CG Oncology emerged late Wednesday when the company priced $1 above its estimated price range of $16 to $18. CG Oncology also increased the size of the deal by 3 million shares to 20 million shares as investors clamored for shares.
At $19 a share, the IPO raised $380 million from underwriters Morgan Stanley, Goldman Sachs and Cantor Fitzgerald. Including the additional 3 million shares to be sold by the underwriters, the deal will raise $437 million.
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CG Oncology is an advanced clinical stage biopharmaceutical company developing cretostimogen, a bladder cancer drug, and other treatments.
The company is backed by several private equity and venture capital firms, including ORI Capital, Decheng Capital Global Life Science Fund IV, Longitude Venture Partners, Kissei Pharmaceutical Co. Ltd, Foresite Capital, TCG Crossover Fund I and Ally Bridge Group.
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The company reported a net loss of $43.8 million in 2022, higher than the net loss of $12.8 million in 2021.
The company expects to report topline data from a Phase 3 clinical trial for cretostimogen by the end of this year.
The CEO of CG Oncology is 33-year-old Arthur Kuan, who has held the position since the company was founded in 2017. He is also a founding member of Ally Bridge Group, a healthcare investment platform.
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-Steve Gelsi
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01/25/24 1619ET
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