EvoGenix raises $9 million in oversubscribed IPO
Thursday, 28 July, 2005
Antibody therapeutic developer EvoGenix closed its initial public offer (IPO) today oversubscribed, raising AUD$9 million through the issue of 36 million shares at $0.25.
The company expects to list on the ASX in early August with the ticker EGX and a post-listing market capitalisation at the issue price of $32.2 million.
"It's an exciting milestone for us, and everyone's very happy and looking forward to the next phase," said EvoGenix managing director Merilyn Sleigh.
More than a dozen institutions invested in the offer which was fully underwritten by specialist brokers Lodge Corporate Services, which recently floated Mesoblast (ASX:MSB).
"We were very well served by Lodge Partners," said Sleigh. "Having their involvement has been really important to getting key institutions behind us. Clearly there was also interest there from the retail market."
EvoGenix is expecting early-stage revenues from licensing its core antibody technologies to biotechnology and pharmaceutical companies. The company also has a program for the rapid in-house development of products using its technology. EvoGenix aims to commence the licensing of these products to pharmaceutical company partners in 2006 which will provide the company with substantial revenues over the next two to five years.
Asked why EvoGenix's IPO closed oversubscribed, at a time when other companies have had difficulties in the current market, Sleigh admitted that she doesn't know "what the magic is". But, she added, "We're offering something a little bit different from other biotech companies. One, of course, is being in the antibody area which is a pretty hot area right now."
She also said that the company's balance between products and technology meant that EvoGenix had a solid base for harvesting income from the development of products, but could also generate revenue in the short term by licensing its technology.
"I think it probably is our focus on, and ability to generate, those short- to medium-term revenues which has given us that edge," said Sleigh.
The money raised through the IPO will be used to accelerate the EvoGenix's development of new antibody therapeutics over the next two to three years.
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