Cellular Dynamics raises $46 million in IPO, sees stock price drop 20%
Cellular Dynamics International, a Madison-based company founded by stem cell research pioneer James Thomson, began selling stock Thursday at $12 a share, raising $46.2 million from the sale of 3.8 million shares.
The company, which trades under the symbol “ICEL,” saw its stock price fall by 20% on the first day of trading, ending the day at $9.50 per share.
In a federal securities statement filed in June, CDI said that in addition to offering 3.8 million shares of common stock, the company would give investors a 30-day option to buy an additional 576,900 shares.
CDI, which manufactures induced pluripotent stem (iPS) cells, previously raised $130 million from private investors. The iPS cells are adult stem cells that are re-engineered to act like embryonic stem cells. That means they can become any cell type in the body, making them valuable for scientific and medical research.
CDI executives indicated they would use the proceeds from this stock offering for research and development, to expand their sales force, and to build out their laboratory in California.