City Therapeutics Allocated No Shares to Half of IPO Orders, Report Says

3-line summary

• City Therapeutics allocated no shares to half of investor orders in its IPO, Bloomberg reported (via Investing.com) October 16. Demand from mutual funds and healthcare-specialist investors for the upsized offering reached several times the available share count; the top 5 investors received 65% of the allocation and the top 10 received about 90%, with company management reported to have been deeply involved in the allocation process. The article did not give a specific reason for excluding half of the orders beyond demand far exceeding supply.
• As previously reported, the IPO priced 11,111,111 shares at $18.00 each, expected to raise about $200 million before fees, with underwriters holding a 30-day option for up to 1,666,666 additional shares; underwriters were Goldman Sachs, Jefferies, Stifel, and Oppenheimer. Shares were set to begin trading on the Nasdaq Global Market under ticker CTY.

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