Biotech company Berkeley Lights (BLI) soared Friday as trading began with an explosive initial public offering that drew heightened interest from institutional investors. The Berkeley Lights IPO priced late Thursday and raised $178.2 million, 41% above initial expectations.
XBased in Emeryville, Calif., Berkeley Lights offered 8.1 million shares, revised upward from 7.4 million, at a price of $22 each. That was above its estimated price range of $19 to $20, which was previously set at $16 to $18.
Berkeley Lights stock catapulted 197.5%, closing at 65.45 on the stock market today.
The company describes itself as "leading digital-cell biology company focused on enabling and accelerating the rapid development and commercialization of biotherapeutics and other cell-based products," according to the Berkeley Lights IPO filing.
Research and advisory firm IPO Boutique said the Berkeley Lights IPO is "many multiple times oversubscribed." That means the request for shares among institutional investors far exceeds what's being made available.
Berkeley Lights IPO Gets Top Rating
On a scale of 1-to-5, IPO Boutique gave the Berkeley its highest rating. That's a rare event, though not so exclusive this week.
"Due to the extreme demand and hype surrounding this company as well as the hot IPO market, we are electing to upgrade the rating from a 4 to a 5," IPO Boutique said in a note to clients on Berkeley Lights.
IPO Boutique this week also placed a 5 rating on financial software company nCino (NCNO). On its first day of trading Tuesday, nCino bolted 195% and raised $250 million.
This past week has been a busy and powerful one for initial public offerings. They included Relay Therapeutics (RLAY), a biotech developer of therapies for solid tumors. Relay Therapeutics rocketed 75% on its first day of trading Thursday, raising $400 million.
GoHealth's Big Day
Health insurance portal GoHealth (GOCO) raised a whopping $914 million on Wednesday. Shares initially jumped 23% but later reversed, ending down 7%.
Among other IPOs on Friday, ALX Oncology (ALXO), priced 8.5 million shares at $19, which was $2 above its estimated range. It jumped 58%, closing at 30.
Pandion Therapeutics (PAND) priced 7.5 million shares at 18. It closed at 18.10.
The Berkeley Lights IPO will trade on the Nasdaq under the ticker BLI. The lead underwriters are JPMorgan and Morgan Stanley.
Please follow Brian Deagon on Twitter at @IBD_BDeagon for more on tech stocks, analysis and financial markets.
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