Spring Bank Pharma Sells Off After IPO Pricing

Spring Bank Pharmaceuticals Inc (NASDAQ: SBPH), a micro-cap, clinical-stage biopharmaceutical company that develops novel therapeutics for the treatment of viral infections, opened at $11.28 on Friday, 6 percent below the IPO price, which was set at $12.00 per share. Trading is scheduled to commence next Wednesday, May 11, under the SBPH symbol on the Nasdaq exchange.

Earlier in the day, the firm had priced its IPO of 920,000 shares at $12, even though the original plan was to offer 2.858 million shares for $13 to $15 each. All of these shares are being offered by Spring Bank, which has also granted its underwriter, Dawson James Securities, Inc., the option to buy an additional 138,000 shares from the company over the next 30 days.

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The company expected to receive about $8.2 million (after discounts and commissions) from the IPO, and planned to use the money to fund a clinical trial and other corporate operations.

Shares of Spring Bank Pharmaceuticals were trading around $11.26, down 6.17 percent on Friday afternoon.

Disclosure: Javier Hasse holds no positions in any of the securities mentioned above.