Biopharmaceutical developer D-Pharm Ltd. yesterday completed the institutional tender of its IPO on the Tel Aviv Stock Exchange (TASE). This will be the first IPO on the TASE in 18 months. Last month, Can-Fite BioPharma Ltd. (TASE:CFBI) set a different precedent when it became the first biopharmaceutical company to hold an offering based on a prospectus since the outbreak of the economic crisis last year.
Clal Finance Ltd. (TASE:CLFN) is the chief underwriter for D-Pharm's offering, together with Rosario Underwriting Services (AS) Ltd. and Meitav Investment House Ltd. Although the underwriters are guaranteeing the offering, they have no green shoe option. The public offering is scheduled for tomorrow.
D-Pharm sought to raise NIS 20 million at a company value of $30 million, before money in the institutional tender. The offering was 40% oversubscribed, with orders amounting to NIS 28 million and the company raised the price of the units to NIS 119 from NIS 118.
D-Pharm plans to raise NIS 5 million in the public tender, for a total IPO of NIS 25 million. If the offering is oversubscribed, the company may raise the price of the units offered. At the same time, the company will raise NIS 57 million in a rights issue at a company value of NIS 120 million, before money. The terms in the rights issue will remain unchanged and the shareholders' are guaranteed their orders regardless of the closing price in the public tender.
D-Pharm will raise at least NIS 82 million in the IPO and rights issue, which should be enough to reach interim results of the Phase III clinical trial for its DP-b99 drug for strokes.
IDB Holding Corp. Ltd. (TASE:IDBH) unit Clal Biotechnology Industries Ltd. (TASE: CBI) owns 41% of D-Pharm. Other shareholders include Pitango Venture Capital and Israel Healthcare Ventures Ltd. Clal Biotech's valuation for D-Pharm has been steadily declining, from $237 million in the financial report for the first quarter of 2007, to $139 million a year later, and $93 million at the end of June 2008. The changes have less to do with developments at D-Pharm and more to do with the market mood.
Published by Globes [online], Israel business news - www.globes-online.com - on August 11, 2009
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