The IPO Buzz: ArriVent BioPharma Upsizes IPO & Prices Deal at $18.00 Mid-Point

More stock at the mid-point: That’s how lung cancer biotech ArriVent BioPharma (AVBP) played it when pricing its IPO on Thursday night (Jan 25, 2024). ArriVent BioPharma increased the IPO’s size to 9.72 million shares – up from 8.33 million shares in the prospectus – and priced the deal at $18.00 – the mid-point of its $17.00-ot-$19.00 range – to raise $175.0 million.

Shares of ArriVent BioPharma ended their first day of NASDAQ trading at $20.00, up $2.00 from their $18.00 IPO price for a gain of 11.11 percent. Volume  for the day was more than 1.98 million shares. ArriVent BioPharma’s NASDAQ debut got off to a strong start – with the stock opening at $24.00 – up $6.00 or up 33 percent from its $18.00 IPO price – at 12:31 p.m. EST today – Friday, Jan. 26, 2024. Volume on that opening trade was a little more than 375,000 shares. The stock pulled back some to trade at $20.75, up $2.75 or up 15.28 percent from its IPO price, at 1:48 p.m. EST today.

Goldman Sachs, Jefferies, Citigroup and LifeSci Capital were the joint book-runners.

ArriVent BioPharma’s IPO is the second biotech IPO priced this week. That timing was fortunate. ArriVent BioPharma’s deal benefited from the optimism in the air after bladder cancer biotech CG Oncology (CGON) doubled its IPO price in its NASDAQ debut on Thursday (Jan. 25, 2024).

Principal stockholders of ArriVent BioPharma include OrbiMed, the big biotech player, and Hillhouse Investment Management, Ltd., a powerhouse in Asian private equity and tech investment circles.

ArriVent BioPharma, based in Newtown Square, Pennsylvania, is a Phase 3 clinical biotech developing furmonertinib to treat patients with non-small cell lung cancer (NSCLC). In 2021, ArriVent BioPharma licensed from Shanghai Allist Pharmaceuticals Company, Ltd., aka Allist, the right to develop and commercialize furmonertinib worldwide, with the exception of greater China, which includes mainland China, Hong Kong, Macau and Taiwan, the prospectus says.

The FDA granted Breakthrough Therapy Designation in October 2023 for furmonertinib to treat non-small cell lung cancer, according to the prospectus.

The company plans to use the IPO’s proceeds to help finance its clinical trials.

ArriVent BioPharma has no product revenue, which is typical for most biotechs when they go public. For the 12 months that ended Sept. 30, 2023, ArriVent BioPharma reported a net loss of $58.58 million.

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