Companies across Europe had hoped to sell and list shares in the wake of Chinese e-commerce group Alibaba’s blockbuster $25 billion (€19.7 billion) listing on the New York Stock Exchange last month. But reduced growth expectations have caused stocks to slide globally, with investors losing their appetite for new, risky investments.
While several firms in Germany and France have postponed listings and the German listings of Rocket Internet and Zalando disappointed, Probiodrug still plans to raise up to €32 million ($40.6 million) by selling up to 1.7 million shares between €15.25 and €19 a piece.
The firm, which is developing drugs to treat Alzheimer’s, announced its detailed listing plans on Friday, when the Dow Jones stock index ended the trading week with a 2.7 procent loss and the German blue chip index DAX with a slide of 4.4 percent.
One reason why Probiodrug, which plans to list its shares on the Amsterdam Exchange on Oct. 27, intends to move ahead with its listing, could be a commitment of existing shareholders to buy about €15 million worth of the offered shares.
The existing shareholders are mostly specialized biotech investors, including HBM Healthcare, Edmond de Rothschild Investment Partners, BB Biotech and Life Science Partners.
The Probiodrug listing could also benefit from its relatively small size, compared to other planned listings, which were in the triple-digit millions.