PepGen (PEPG) stock dipped 3% following the biotech company’s $108M initial public offering.
Shares of PepGen opened at $15.60, hitting a high of $16.99 before slipping to a low of $11.50. The stock recently changed hands at $11.68, down 3%, at approximately 11:15 a.m. ET.
The company, which has been developing a treatment for Duchenne muscular dystrophy, offered 9M shares at $12 per share. Underwriters were granted a 30-day option to buy up to 1.35M share at the IPO price.
The deal was slightly upsized from earlier in the week, when PepGen said it was expecting to offer 7.2M shares priced at $13 to $15. The transaction would have raised $101M if priced at the midpoint and up to $124 if the underwriter’s option had been exercised in full.
PepGen’s lead product, PEGN-EDO51, is in Phase 1 clinical trials for the treatment of Duchenne muscular dystrophy. The company plans to use most of the IPO proceeds to further development of the treatment.
The biotech group is still operating in the red. For 2021, PepGen reported a net loss of $27M with no revenue.
For a more in-depth look at PepGen, check out SA contributor Donovan Jones’s “PepGen Seeks $101M in US IPO”.