Covid Kit Maker SD Biosensor Raised $6B Market Value in IPO

Covid Kit Maker SD Biosensor Raised $6B Market Value in IPO

On Friday, July 16, the covid test kit maker, SD Biosensor raised $6 billion in its market value. This comes after its initial public offering in Seoul, South Korea.

Previously, the biotech firm’s sales surged to $1 billion in the first quarter. This was largely due to the strong demand for coronavirus testing kits.

The company gained as much as 28% to $58.51, raising 776.4 billion won at a valuation of 5.4 trillion won or $4.7 billion in its offering that oversubscribed 1,000 times.

Even though the global rollout of COVID-19 vaccines gives a murky outlook for the makers of testing kits, SD Biosensor keeps on track through Mergers & Acquisitions.

Vice-Chair Lee Hyo Keun stated that they are planning to spend $1.8 million on its acquisitions. Details regarding the merger will be announced in early 2022.

He added that they are also looking to add distribution channels in the United States, South America, and Europe.

An analyst forecasted that the company’s quarterly sales might decline from its previous $1 billion level since the prices of test kits are lowering due to extreme competition.

Nonetheless, Lee stated that their demand for diagnostic products is still robust due to the spread of coronavirus variants.

However, before its IPO, South Korean financial regulators asked SD Biosensor to lower its price offering over concerns of overvaluation.

Initially, the company planned to raise as much as $875,917 at a valuation of nearly $7.9 million.

Lee stated that there were worries regarding their high IPO price due to concerns that the vaccination will lower the testing demand therefore, the sales would sharply drop.

He admitted that there were concerns in the market. This is the reason behind them following the regulators and lowering the price.

Stevanato Climbed $672M in U.S. IPO

The Italian glass vials maker for the coronavirus vaccine, Stevanato Group raised $672 million in its U.S. initial public offering on Thursday.

In a statement, the firm said that it priced 32 million shares at $21 per share in comparison to its previous plan of 40 million shares at a price range of $21 to $24 per share.

Therefore, the company’s initial public offering ended at $6.3 billion.

In its filing with the Securities and Exchange Commission, Stevanato said that it is providing glass vials and syringes to an estimated 90% of the currently marketed vaccine programs.

On Friday, the company will be listed on the New York Stock Exchange under the ticker symbol “STVN”.

Additionally, Morgan Stanley, BofA Securities, and Jefferies led its offering.