Shares in Regeneus Ltd., the cell-based regenerative company, has a market value of $49.6 million after the stock rose 8 per cent on its first day of trade.
The Sydney-based company, founded in August 2007 to develop and commercialise cell treatment for humans and animals, closed up 2 cents at 27 cents, after rising as high as 29 cents.
The loss-making company had sold 42 million shares, or about a quarter of total stock, at 25 cents a share through the IPO underwriters, boutique investment bank Peloton Capital and stockbrokers BBY Ltd. The company has a total of 183.9 million of stock outstanding, according to Bloomberg data.
Australia’s IPO market is picking up, say bankers and lawyers, after a a 26 per cent drop in issuance year on year, according to Bloomberg data. Thirteen companies are due to sell shares in an IPO by year-end, according to Bloomberg. To date this year, 25 companies have sold shares in an IPO while 29 announced plans to do so.
Regeneus has developed and commercialised an autologous, a process that uses a patient’s own cells, for the treatment of musculoskeletal conditions in humans, as well as a treatment for dogs and horses.
In the six months to end 2012, the company had a $3.6 million loss.