Auris Medical slashes proposed price to $6, increases insider buying; market cap drops 40%
Auris Medical, a biotech developing treatments for tinnitus
and other inner ear disorders, lowered the proposed deal size for
its upcoming IPO on Tuesday. The Zug, Switzerland-based company
now plans to raise $56 million by offering 9.4 million shares at
a price of $6 per share.
The company had previously filed to offer 6.9 million shares at a range of $10 to $12. At the midpoint of the revised range, Auris will raise 26% less in proceeds than previously anticipated. Its proposed market cap dropped 40% to $170 million.
Auris Medical, which was founded in 2003, plans to list on the NASDAQ under the symbol EARS. Jefferies and Leerink Partners are the joint bookrunners on the deal. It is expected to price tonight.