Vir Biotechnology lost a fourth of its value in its trading debut, adding to disappointing results for IPOs in an industry that was seen as at least partly immune to the ills affecting this year’s newly public tech giants.
San Francisco-based Vir sold 7.14 million shares Thursday for $20 each — the bottom of its marketed range — to raise $143 million. The shares opened Friday at $16.15 and fell to $15 at 12:54 p.m. in New York, giving the company a market value of about $1.6 billion.
Vir’s backers include SoftBank Vision Fund, Bill & Melinda Gates Foundation and Singapore’s Temasek Holdings.
Listing stumbles by high-profile companies including We Co., the parent company of WeWork, have cast a pale over IPOs, which had thrived this year in the U.S. despite trade tensions with China and stock market volatility. Postmates Inc., which submitted a confidential filing in February, is one of the companies that could delay its listing to 2020, people familiar with the matter have said.
A spate of biotechnology IPOs in the past two weeks have generally fallen short their goals.
BioNTech, German cancer treatment firm, downsized its offering Wednesday to raise $150 million and is now down 7.2% from its offer price. ADC Therapeutics withdrew its IPO application last week citing “adverse market conditions.”
Vir, founded in 2016, develop treatments for infectious diseases. Its most advanced treatment is for hepatitis B is in phase 2 clinical trial and it has a flu treatment in phase 1 trial, according to its prospectus.
The offering is being led by Goldman Sachs, JPMorgan Chase, Cowen Inc. and Barclays. The shares are trading on Nasdaq Global Select Market Friday under the symbol VIR.