TIG IPO'd at $15.50 but trading at just $11.50. Just goes to show how difficult it still is to raise money for stem cell companies. I took the decline as an opportunity to pick up some shares for the first time. Has $60MM in cash now and Takeda to commercialize in Japan. It should rebound soon enough to at least the IPO price, IMHO.
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As far as I understand it the price of $15.50 is final and will not change. The U/Ws take the risk since this is not a "best efforts" offering as far as I know. This is not like the rights offering Cytori had to reprice numerous times to get done. Trading at a huge discount to the last price of the ordinaries in Brussels.
In a bought deal, the underwriter purchases a company's entire IPO issue and resells it to the investing public. The amount of compensation the underwriter makes represents the spread between the price for which the underwriter acquired the stock from the issuer (usually a discounted price) and the price the for which underwriter sells the stock to the public. In this case, the underwriter bears the entire risk of selling the stock issue, and it would be in his or her best interest to sell the entire new issue, because any unsold shares then continue to be held by the underwriter.
Tigenix is trading at .69 EU in Brussels or $.72 U.S down .12 EU -
. Each U.S traded TIG ADS equals 20 ordinary shares and is now worth $14.35. Arbitrage traders will close the disparity.
If it's down .12 EU from yesterday, then yesterday's US dollar value would have been at least .80 and 20 times that would have been $16 - so why was it trading at 11-12 yesterday - do you mean it is up .12 EU from yesterday?
No, it is down today in Brussels. The spread was wider yesterday which is why I bought it. Although the $.81 EU was a closing price it wasn't a live price when TIG was getting hit yesterday. However, the spread was extremely wide as so was the opportunity.