Adarx Pharmaceuticals allocates 55% of IPO to 10 investors

Investing.com -- Adarx Pharmaceuticals Inc. distributed approximately 55% of shares in its initial public offering to 10 institutional investors, according to a Friday report by Bloomberg.

The RNA-silencing drug developer priced its IPO at $17.00 per share for 26,250,000 shares of common stock. The San Diego-based biotechnology company expects to receive gross proceeds of approximately $446.3 million before deducting underwriting discounts, commissions, and other expenses.

The upsized offering attracted demand for around 10 times the available shares and drew orders from long-only investors and healthcare-dedicated funds, according to the report. The top 25 investors received about 95% of the shares.

Management was heavily involved in allocating the shares, people familiar with the matter said. About 100 investors received zero shares.

Shares are set to begin trading on the Nasdaq Global Select Market later Friday under the ticker symbol ADRX.

JPMorgan Chase & Co., Morgan Stanley, Toronto-Dominion Bank, UBS Group AG, and LifeSci Capital were among the banks that worked on the offering.

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