The Chimeric Therapeutics (ASX: CHM) share price had a very strong start to life as a listed company on Monday.
The drug development company’s shares jumped a whopping 88% at one stage to a high of 37.5 cents.
The Chimeric Therapeutics share price eventually closed the day at 29.5 cents, which is 47.5% higher than its Initial Public Offering (IPO) price of 20 cents.
The Chimeric Therapeutics IPO.
Chimeric Therapeutics’ shares landed on the ASX boards today following the completion of an IPO that raised $35 million from investors.
The offer comprised of 175 million shares to raise $35 million at an offer price of $0.20 per share, giving the company a market capitalisation of $66.1 million upon listing.
Management advised that the IPO was met with excellent support from both new and existing institutional, professional, and retail investors within Australia and overseas.
The proceeds from the IPO will be used to fund the phase 1 clinical trial of the CLTX-CAR T at the City of Hope Cancer Centre in Los Angeles and to further develop an oncology focused pipeline of novel cell therapies.
In addition, some of the proceeds will be used to invest in personnel, corporate, and working capital, as well as license fees to City of Hope.
What are Chimeric and CLTX-CAR T?
Chimeric is a clinical stage cell therapy company focused on the development of novel cell therapies for oncology. It is developing CLTX-CAR T, which uses a peptide derived from scorpion toxin, to direct T cells to target glioblastoma (brain cancer).
It has noted potent anti-tumour activity against glioblastoma established in preclinical models.
In light of this, a phase 1 trial of CLTX-CAR T therapy is now underway at the City of Hope cancer centre, where the first patient was dosed in late 2020.
Chimeric’s Executive Chairman, Paul Hopper, commented: “The team at Chimeric has been overwhelmed with the support for the IPO and what we believe is a highly promising technology in an attractive area of immuno-oncology. The IPO allows us to further develop the CLTX-CAR T therapy and extend it to patients with an unmet need, including those suffering from GBM as well as other solid tumors.”
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
More reading
- ASX 200 drops 0.8%
- RBA warns that low rates don’t come without cost
- ASX dividends: Are miners the new bank shares?
- ASX 200 down 0.5%: JB Hi-Fi guidance impresses, Super Retail update, Ramsay surges
- Why the Premier Investments (ASX:PMV) share price is under pressure
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
The post Chimeric Therapeutics (ASX:CHM) share price jumps 88% following its IPO appeared first on The Motley Fool Australia.
from The Motley Fool Australia https://ift.tt/38SP028
Leave a Reply