ADC Therapeutics, a Switzerland-based cancer drug developer that was spun off by pharmaceutical firm AstraZeneca’s Spirogen subsidiary, closed its initial public offering at almost $268m yesterday.
The company had initially floated on Friday, pricing more than 12.2 million shares at $19 each, above the IPO’s $16 to $18 range, and increased the size of the issue from 10.3 million shares.
On their first day of trading, ADC’s shares opened at $30.00 and had risen to $31.14 at close of trading yesterday, giving it a $2.21bn market cap. Joint book-running managers Morgan Stanley, BofA Securities and Cowen subsequently bought nearly 1.84 million additional shares to close the offering.
Founded in 2011, ADC is working on antibody drug conjugates to treat solid tumours and haematological malignancies. It has two drug candidates that have reached phase 2 clinical trials and proceeds from the offering will fund the advancement of its product pipeline.
The company had raised approximately $531m in funding as of a $276m series E round featuring AstraZeneca, private equity firm Auven Therapeutics, hedge fund Redmile Group and Wild Family Office that closed in June 2019.
AstraZeneca holds a 5.4% stake in ADC following the IPO’s close. Its largest shareholder is Auven Therapeutics, which owns a 32.6% stake, while its other notable investors are Wild Family Office vehicle HPWH TH (8.4%) and Redmile Group (4.5%).
