Moderna market value shrinks to $6.1 billion
Moderna shares sank on their first day of trading as investors gave a chilly reception to one of this year’s splashiest stock market debuts.
The biotechnology company that is aiming to make personalized cancer vaccines fell 19 percent to $18.60 Friday, a disappointing start for what had been one of the most richly valued private health-care start-ups.
The listing is likely to be the last in what has been a banner year for initial public offerings by biotech firms. Before Moderna’s debut, some 53 biotech companies had gone public this year on U.S. exchanges, raising $5.7 billion overall. That topped the previous record of $5.27 billion raised by such IPOs in 2000, according to data compiled by Bloomberg.
Moderna expanded the size of its offering Thursday to sell almost 26.3 million shares at $23 each, in the middle of the marketed range of $22 to $24 a share, according to a statement. The offering gave the company a market value of about $7.85 billion, topping its $7 billion valuation after a $500 million private funding round in February.
By Friday’s close, Moderna’s market value had shrunk to $6.1 billion.
The IPO’s vast size and rich price may have played a role in its poor performance, analysts suggested. Moderna has no approved products on the market and has consistently lost money as it ramps up its research and drug-development efforts.
A worker cleans a market alleyway after the closure of businesses in Hong Kong. The special administrative region of China is home to 7.2 million people and had a $61,500 per capita GDP in 2017.