Stem cell firm Regeneus (RGS) will float its shares on the Australian Securities Exchange early next week after its initial public offering closed fully subscribed today.
The offer raised $10.5 million at 25 cents a share, slightly higher than its target for $10 million but below the maximum of $12 million Regeneus had allowed for depending on demand.
This puts the company’s market capitalisation at around $46 million.
Shares in the company will commence trading on the Australian Securities Exchange on September 17, marking the first non-device biotechnology float in more than two years. Regeneus had originally planned to float today, but had to wait for cheques to clear.
“We are now well-positioned to pursue our business milestones for the next two years,” executive chairman John Martin said.
In its prospectus, Regeneus said the funds were to be used primarily to fund the registration of Regeneus' CryoShot product in the US and Australia so that it can be approved for veterinary use and to develop more labs and day surgeries for its HiQCell therapy.
CryoShot is a product using donor cells for the treatment of muscoloskeletal conditions in dogs and horses, while the HiQCell therapy uses the patients' own regenerative cells from their fat tissue to treat osteoarthritis and other inflammatory conditions in humans.
Regeneus’s successful raising is a good signal for Australia’s biotech sector given the company is in the very early stages of the clinical process.