Izmagilov
Shares in the French biotech company Abivax (NASDAQ:ABVX) fell 24% in afternoon trading on Friday following its $217 million U.S. initial public offering.
Abivax shares opened at $11.60 after holding steady and later fell to a low of $8.25. Shares recently sold for $8.77 around 12:40 p.m. ET.
The French company priced 18.7 million American Depositary Shares at US$11.60 per ADS, with each ADS representing one ordinary share. The underwriters have been granted a 30-day option to purchase up to 3 million additional ADSs.
Abivax also privately placed 1.6 million common shares with certain investors in Europe at the same price, raising approximately $19 million.
The company said both deals collectively raised approximately $236 million, excluding the exercise of underwriters’ option rights.
Abivax added that it expects to use the funds raised through the offerings to fund operations through the announcement of key Phase 3 data for its ulcerative colitis drug obefazimod and key Phase 2a data for the drug Treatment of Crohn’s disease to be announced.
Abivax common shares are also traded on Euronext Paris.
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