FibroGen climbs, NeuroDerm skids in market debuts
Nov. 14, 2014
NEW YORK (AP) — Companies got a mixed reception Friday as shares of FibroGen and Virgin America surged while shares of NeuroDerm and Landmark Infrastructure sank.
Biotechnology company FibroGen expanded its initial public offering to 8.1 million shares and said the IPO priced at $18 a share, bringing in $145.8 million before expenses and discounts. In midday trading, its stock jumped $4.15, or 23.1 percent, to $22.15. The shares are trading on the Nasdaq under the ticker symbol "FGEN."
FibroGen Inc. is developing treatments for anemia and fibrotic conditions, or diseases that cause scarring and lead to organ failure.
The San Francisco company had expected to sell 7.1 million shares for $16 to $19 each. The underwriters of its IPO will have the option to buy another 1.2 million shares.
Virgin America Inc.'s IPO priced above expectations at $23 per share for 13.3 million shares, and its IPO raised almost $306 million before expenses. The stock was up almost 30 percent to $29.90 at midday. The company is going public at a time when airline stocks are climbing because of full planes, growing revenue, and reduced fuel prices.
Landmark Infrastructure Partners LP said its offering of 2.7 million units priced at $19 each, raising $50.4 million. The company based in El Segundo, California, had expected to sell 3 million units for $19 to $21 each. Landmark is a partnership formed by Landmark Dividend LLC to own cell towers, billboards and leased property.
Its common units are trading on the Nasdaq under the symbol "LMRK," and they slipped 48 cents, or 2.5 percent, to $18.52.
The underwriters of the IPO will have the option to buy another 397,500 units.
The IPO of Israeli drug developer NeuroDerm Ltd. raised $45 million, as the offering of 4.5 million units priced far below expectations at $10 per share. The stock fell $1.51, or 15.6 percent, to $8.45 in midday trading.
NeuroDerm is developing drugs that treat diseases of the central nervous system, including a slow-release form of the Parkinson's disease drug levodopa that would let patients take the medication continuously. The company had expected its stock to start at $13 to $16 per share. The shares are trading on the Nasdaq under the ticker symbol "NDRM."
The underwriters will have the option to buy an additional 675,000 shares.