The hot category of initial public offerings in the biotechnology sector continues, as two started trading Friday — Seer (SEER) and Silverback Therapeutics (SBTX). Both the Silverback and Seer IPOs priced above their estimated range late Thursday.
The Seer IPO soared by triple digits. It raised $175 million by offering 9.2 million shares at $19, above the projected range of $16 to $18, providing it a fully diluted market value of $1.3 billion. Seer stock catapulted 197.2%, closing at 56.46 on the stock market today.
The company is developing next-generation proteome analysis tests for biomedical research.
The lead underwriters of the Seer IPO, which will trade on the Nasdaq, are JPMorgan and Morgan Stanley.
Silverback jumped by double digits. it raised $242 million by offering 11.5 million shares at 21, above the range of 19 to 20. It originally planned to offer 10 million shares. The company has a fully diluted market value of $758 million. Silverback stock jumped 19.1%, closing at 25.
Lead underwriters for the Silverback IPO, which will also trade on the Nasdaq, are Goldman Sachs, SVB Leerink and Stifel.
Silverback, Seer IPOs: Health Care Leads Charge
There have been 201 IPOs this year, up 32% from the same period last year, with about half coming from the health care sector, according to Renaissance Capital. Renaissance manages exchange traded funds focused on recent IPOs.
On Thursday, Kinnate Biopharma (KNTE) raised $240 million with an initial public offering that doubled in price on its first day of trading. Kinnate offered 12 million shares at 20, above the estimated range of 18 to 19. It originally planned to offer 10 million shares at 16 to 18.
The company focuses on the discovery and development of small molecule kinase inhibitors for difficult-to-treat, genomically defined cancers.
Kinnate stock soared 95% Thursday, closing at 39.03. Kinnate climbed another 11.4% Friday, closing at 43.46.
Recent IPOs are where you often find some of the market’s best stocks. Also, companies that bring new IPOs to market are typically in their early stages of growth, and it’s big earnings growth that generally fuels a stock’s price performance.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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