RedHill Biopharma Ltd. has successfully completed its IPO on the Tel Aviv Stock Exchange (TASE), raising a gross NIS 51.6 million in shares and warrants. The offering was oversubscribed.
RedHill, which buys the rights to drugs in advanced clinical trials, planned to raise NIS 40 million, but increased the amount following heavy demand in the public tender of the IPO.
RedHill offered 131,000 units of shares and warrants at a minimum price of NIS 305 per unit. Each unit comprised 100 shares at NIS 3.05 per share, and 50 warrants at no cost. The warrants have a strike price of NIS 3.80 per share until February 2012, and NIS 4.60 per share between February 2012 and February 2014.
Following the oversubscription, RedHill raised the price to NIS 361 per unit, and increased the number of units to 143,023.
If the warrants are exercised in full, gross proceeds could increase by NIS 27-33 million to a total of NIS 84 million.
RedHill will use the proceeds to continue development of six drugs in its pipeline. The drugs are in the late clinical trials, including a treatment for Crohn's Disease, and drugs waiting for the filing of a New Drug Application (NDA) with the US Food and Drug Administration (FDA).
Published by Globes [online], Israel business news - www.globes-online.com - on February 6, 2011
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