ProStrakan’s shares start trading today after the company announced that its initial public offering had been priced at £1 per share – placing some 40 million new shares and raising around £40 million pounds. The move values the company at around £180 million.
ProStrakan intends to use the net proceeds of this offering to raise equity finance to broaden the geographic scope and scale of its operations through investing in the growth or development of identified existing products and launching new products. The firm is also planning to use the monies to fund and move products through clinical development, and to acquire additional products, businesses, companies, technologies or other assets that fit in with its objectives.
In the face of criticism that it had raised a disappointing amount, Wilson Totten, chief executive, said: “In this very difficult equity market, we are delighted that investors have recognised ProStrakan’s differentiation and qualities, as evidenced by their support. We are now looking forward to continuing ProStrakan’s rapid growth and taking advantage of the many opportunities ahead to build shareholder value.”
Last week, Industry speculation was rife that ProStrakan would be cutting its valuation in order to attract enough investor interest to support the float. However, a spokesman for the company told PharnmaTimes News Online that the news was “entirely speculative.”