Telix withdraws proposed US IPO
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The news: Telix Pharmaceuticals has withdrawn its proposed initial public offering (IPO) in the US, stating that it "did not feel that the proposed discounts were aligned with its duty to its existing shareholders".
The numbers: The biopharmaceuticals company launched its IPO on the Nasdaq last week, with plans to offer 17 million American depositary shares to raise up to USD200 million ($300 million).
Shares last closed at $16.46, having risen from $9.53 since the company announced its intention to file (ITF) for the IPO on 4 January.
Telix shares have been in a trading halt since 13 June and are expected to resume trading on the ASX today.
The context: Melbourne-based Telix, which had planned to use proceeds of the IPO to build its manufacturing and supply chain capabilities, said that "given the proposed Nasdaq listing was not predicated on the need to raise capital, Telix's management and board of directors have decided not to forward with the transaction at the terms provided under current market conditions".
In a release to the market, Telix noted that since announcing its ITF in January, the company has achieved a number of commercially significant milestones, including positive therapeutic pipeline data readouts, several successful strategic acquisitions and the completion of two further product approval submissions to the US Food and Drug Administration.
What they said: Telix managing director and group CEO Christian Behrenbruch said: "While this is not our desired outcome Telix's strategic objectives must align with our duty to existing shareholders".
"I'd like to thank my team for the personal commitment and incredibly long hours put into this IPO process," he said.
The source: ASX announcement
