CG Oncology Inc., a cancer drug company based in Irving, California, has successfully priced its initial public offering (IPO) above its estimated range. The company has also decided to include three million additional shares in the deal, signaling a bullish start to their trading debut on the Nasdaq, scheduled for Thursday.
With underwriters Morgan Stanley, Goldman Sachs, and Cantor Fitzgerald leading the offering, CG Oncology offered a total of 20 million shares at $19 per share, resulting in a total capital raise of $380 million. Including the additional three million shares to be sold by underwriters, the deal is expected to raise an impressive $437 million.
The decision to increase the size of the offering from 17 million to 20 million shares, as well as pricing it $1 above the original price range of $16-$18, demonstrates strong demand for the stock, and reflects investor confidence in the company’s potential.
CG Oncology focuses on developing innovative treatments for cancer, particularly cretostimogene, a promising drug for bladder cancer. Additionally, the company is involved in the development of other therapeutic solutions.
Backing CG Oncology are well-established private-equity and venture-capital firms such as ORI Capital, Decheng Capital Global Life Science Fund IV, Longitude Venture Partners, Kissei Pharmaceutical Co. Ltd, Foresite Capital, TCG Crossover Fund I, and Ally Bridge Group.
While the company reported a net loss of $43.8 million in 2022, which is wider than its $12.8 million net loss in 2021, CG Oncology remains optimistic. They are expecting to release topline data from a Phase 3 clinical trial for cretostimogene by the end of this year.
Leading CG Oncology as Chief Executive Officer is Arthur Kuan, a founding member of Ally Bridge Group and a prominent figure in the healthcare investment sector. Since the company’s inception in 2017, Kuan has played a pivotal role in its growth and development.
CG Oncology’s IPO marks a positive turning point in the market for initial public offerings, following a relatively quiet year in 2023. In the coming days, we can also expect Amer Sports and BrightSpring to make their stock market debuts.
As investors eagerly monitor the IPO market for promising opportunities, CG Oncology stands out as a potential game-changer in the field of cancer therapeutics.
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