City Therapeutics (NASDAQ: CTY) IPO: RNAi Biotechnology Stock Makes Its Market Debut

• City Therapeutics (NASDAQ: CTY) priced its initial public offering at $18.00 per share, raising approximately $200.00 million in gross proceeds.

• The clinical-stage biotechnology company develops RNA interference treatments designed to reduce the production of disease-related proteins.

• The underwriters received an option to purchase additional shares, which could increase total gross proceeds to approximately $230.00 million if exercised in full.

City Therapeutics (NASDAQ: CTY) priced its upsized IPO at $18.00 per share, selling 11,111,111 shares. The offering generated approximately $200.00 million in gross proceeds before underwriting discounts, commissions and other expenses.

The company develops RNA interference, or RNAi, treatments designed to silence genes responsible for producing disease-related proteins. City Therapeutics is a clinical-stage company, meaning its treatments remain under development and have not been approved for commercial sale.

City Therapeutics granted the underwriters a 30-day option to purchase up to 1,666,666 additional shares at the IPO price. If exercised in full, the option would increase total gross proceeds to approximately $230.00 million. The company estimated net proceeds of approximately $181.50 million, or $209.40 million if the option were fully exercised, after fees and expenses.

Under its earlier IPO terms, City Therapeutics had targeted a valuation of up to $956.30 million. The shares subsequently opened at $23.00 on their Nasdaq debut, giving the company an estimated market value of approximately $1.19 billion.

City Therapeutics later traded at $21.46, which was $3.46, or approximately 19.2%, above its $18.00 IPO price. At that quoted price, the stock was down $0.94, or 4.20%, for the day.