Shares of Atai Life Sciences, backed by billionaire investor Peter Thiel, surged 40 p.c of their U.S. inventory market debut on Friday, giving the German psychedelics startup a market capitalization of $3.19 billion.
The Berlin-based biotech startup, which is exploring the usage of psychedelic therapies for psychological diseases, raised $225 million from selling 15 million shares in its upsized initial public offering on Thursday.
The corporate’s shares opened at $21, greater than the IPO value of $15, however gave up early good points to commerce flat by 1600 GMT.
Atai was co-founded in 2018 by German investor Christian Angermayer, an advocate of the advantages of utilizing psychedelics similar to psilocybin to treat depression, anxiety and substance use disorders. The German startup has backed a number of corporations creating such therapies.
Psilocybin, the psychedelic energetic compound in magic mushrooms, was discovered to be at the very least as efficient as escitalopram, a number one antidepressant drug, in a examine by British scientists.
Atai was contemplating floating its shares in the US in Might, Reuters reported in March, citing a supply near the matter.
Its debut comes at a time when U.S. IPOs have already raised $171 billion within the first six months of the 12 months, scorching previous the 2020 report of $168 billion, in response to information from Dealogic.
Angermayer has backed about 30 biotech corporations, together with immunotherapies agency Sensei Biotherapeutics, psychological healthcare firm Compass Pathways and synthetic intelligence-powered drug discovery platform AbCellera Biologics , all of which listed in the US in latest months.
Germany-based laser communication applied sciences agency Mynaric and information middle operator Northern Knowledge, each partially owned by Angermayer, are additionally planning to listing on the Nasdaq later in 2021 or in 2022, Reuters reported on Thursday.
Credit score Suisse, Citigroup, Cowen and Berenberg had been the lead underwriters for the providing.