Cargo Therapeutics IPO Pricing
Cargo Therapeutics CRGX, a clinical-stage biotech specializing in cancer treatments, announced on Thursday that its initial public offering (IPO) has been priced at $15 per share. This price falls at the lower end of the company's range. The IPO consisted of the sale of 18.8 million shares, raising a total of $282 million. Based on this IPO, Cargo Therapeutics has been valued at $580.5 million.
Underwriters and Option for Additional Shares
Leading financial institutions JP Morgan, Jefferies, TD Cowen, and Truist Securities served as the underwriters for this IPO. As part of the deal, they have an option to purchase up to 2.8 million additional shares within a 30-day period.
Allocation of Proceeds
The proceeds generated from the IPO will be allocated towards various areas including clinical development, research and development (R&D), working capital, and other general corporate purposes.
Focus on Clinical Development and Pre-Revenue Status
As a biotech company without any approved drugs in its portfolio, Cargo Therapeutics is currently in the pre-revenue stage and experiences losses. This is a common situation for biotech firms with a strong focus on product development and innovation.
Stock Trading Information
The stock of Cargo Therapeutics is scheduled to commence trading on Nasdaq later today under the ticker symbol "CRGX."
Market Performance Comparison
For the year to date, the Renaissance IPO ETF has shown a notable gain of 25%. In contrast, the S&P 500 has experienced a 13% gain during the same period.
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