Markets
Biotech

IPOs Looking Good to Biotechs

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Share prices of Kythera Biopharmaceuticals (KYTH) and Intercept Pharmaceuticals(ICPT) popped significantly Thursday following their initial public offerings, indicating an appetite for fresh biotech issues. Calabasas, Calif.-based Kythera, which sold 4.4 million shares for $16 each to raise $70.4 million, opened at $18.49 a share and ended the day at $19.79 a share. New York-based Intercept sold 5 million shares at $15 each to raise $75 million. It opened at $19.40 a share and closed its first day at $19.40 a share. In both cases, the issuers upsized the number of shares offered and priced at the high end of their respective ranges.

Markets

Pacific Biosciences in ATM with Cantor Fitzgerald

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Pacific Biosciences of California (PACB) announced that it has secured up to $30 million in an ATM (At the Market) transaction with Cantor Fitzgerald & Co. The purchase price is the prevailing market price at the time of the Draw Down Notice. Placement Agent counsel was Reed Smith, and issuer counsel was Wilson Sonsini Goodrich & Rosati. The agreement closed on Oct. 05, 2012.

Markets
ATM

ATMs On the Rise

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Prior to 2008, at-the-market (ATM) offerings were virtually non-existent. But thanks to expanded shelf offering rules and a rough financing market, ATMs are becoming more prevalent as growth companies pursue capital-formation strategies. The offerings, which are conducted at the company’s request with newly issued shares at market prices, in a short time have become more widely used than equity lines. This year more than $190 million has been raised of a total potential of over $2 billion in 43 ATM offerings through the end of September by emerging growth companies with market caps from $10 million to $1 billion, according to PlacementTracker. This year’s ATM deal pace has already matched that of all of 2011, when $628 million was raised by issuers in 43 deals.

Markets

Real Estate Capital Redefined

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As potential crowdfunders wait for the Securities and Exchange Commission to release rules regarding security sales to the general public next year, one company is already well on its way to using the process to finance a roughly $1.3 million property redevelopment at 1351 H Street NE in Washington, D.C. And the developers suggest that crowdfunding has the potential to substantially change the way that real estate sponsors raise money in the future, especially for neighborhood projects. “This is so diametrically opposed to how real estate is financed today,” said Benjamin Miller, who with his brother is leading the development. "Most people don’t have access to this type of investment, but investing in a nearby building makes a lot more sense to me than in a gold mine in South Africa"

The developers in June began selling Class B units for $100 each in Fundrise 1351 H Street, the owner of a 5,380 sq. ft. two-story building at the site.