IPO Roundup: Phathom Pharmaceuticals surges on upsized offering, others struggle in 5-IPO day

The only other company to make a strong first market impression was Progyny, a fertility and family building benefits provider

Forklift lifting the final wooden block to create the word 'IPO'
Youdao, Cabaletta and AIH each struggled to find their footing

Phathom Pharmaceuticals Inc (NASDAQ:PHAT), a Phase 3 biotechnology company focused on treating gastrointestinal diseases, raised $182 million after upsizing its offering by 1.7 million shares. 

The Illinois-based company offered 9.6 million shares at $19 per share, the midpoint of its $18 to $20 range.

Phathom’s initial product candidate is vonoprazan, which blocks acid secretion in the stomach as a treatment for gastroesophageal reflux disease.

The company debuted at $20.32 and rose to $21.50, 13% above its IPO price.

Elsewhere, Progyny Inc (NASDAQ:PGNY), a New York-based provider of fertility benefits, started strong after raising $130 million in its IPO. 

The company offered 10 million shares at $13 per share, below its projected range of $14 a $16 per share. 

Progyny, founded in 2016, offers its fertility and family building benefits to more than 80 employer clients and roughly 1.4 million employees and their partners.

Shares opened trading at $13.50 and climbed to $15.77, 21% above its IPO price. 

Youdao Inc (NYSE:DAO), a Chinese online education company being spun out of internet services company NetEase Inc (NASDAQ:NTES), stumbled early after raising $95 million.

The company got there by offering 5.6 million shares at $17 per share, within its $15 to $18 range. 

Youdao calls itself the leading intelligent learning company in China, boasting more than 100 million monthly active users (MAUs) in the first half of 2019.

Shares opened lower at $13.50 and recovered slightly to $14.01, 18% below its IPO price. 

Cabaletta Bio Inc (NASDAQ:CABA), a Philadelphia-based biotechnology company developing engineered T-cells, priced well below its range en route to a $75 million IPO and flopped in its public debut.

The company offered 6.8 million shares at $11 per share, well below its anticipated $14 to $16 range. In order to get closer to its expected $87 million offering, the company uppsized its IPO from 5.9 million shares. 

Cabaletta’s lead CAAR T cell product candidate is designed to treat patients with the rare skin disorder mucosal pemphigus vulgaris, and its three other candidates have demonstrated target engagement in vitro.

The stock opened even lower at $9 and ticked up to $9.02, 18% below its IPO price.

Aesthetic Medical International Holdings Group Ltd (NASDAQ:AIH), a provider of medical services in China, hit its $30 million offering expectations but stumbled out of the gate. 

The Shenzhen-based company offered  2.5 million shares at $12 per share, the midpoint of its range of $11 to $13 per share.

That was where the good news ended. AIH shares opened at $12.16 and dropped to $7.84, nearly 35% below the offering price.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

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