Divergent aftermarket results for Phathom, Cabaletta IPOs
With evidence still suggesting that confidence in biotech IPOs has begun to waver in recent weeks, two new listings traded in opposite directions Friday after pricing offerings ahead of the session. Phathom posted a double-digit gain after upsizing its offering, while Cabaletta raised less cash than it had hoped, and then sank in the aftermarket.
Demand was high enough for shares of gastrointestinal company Phathom Pharmaceuticals Inc. (NASDAQ:PHAT) that the company was able to boost the number of shares offered while still pricing in the middle of its proposed range. The company raised $181.7 million through the sale of 9.6 million shares at $19, giving it a postmoney valuation of $523.4 million. It had hoped to sell 7.9 million shares at $18-$20...