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Cellular Dynamics Prices IPO; Anticipates Raising up to $51M

NEW YORK (GenomeWeb News) – Cellular Dynamics International today priced its planned initial public offering, expected to bring in up to $51 million in net proceeds.

In an amended Form S-1 filed with the US Securities and Exchange Commission, the Madison, Wis.-based stem cells technologies firm, which filed to go public in early June, said that it will offer more than 3.8 million shares of its common stock at between $12 and $14 per share. At the $13 mid-point price, the offering would bring in net proceeds of $44 million, or $51 million if the underwriters exercise their overallotment option in full, Cellular Dynamics said.

JP Morgan is the sole book-running manager on the offering, while Cowen & Co. and Leerink Swann are co-managers.

About $20 million of proceeds will go toward R&D, while about $8 million will be directed at sales and marketing activities, it said. Another $5 million will be used to fund property, plant, and equipment, including the build-out of a laboratory in California, as well as intellectual property, with the rest to be used for working capital and general corporate purposes.

In late June the company entered into a $20 million term loan credit agreement. Cellular Dynamics said it does not intend using proceeds to repay the loan.

Cellular Dynamics plans to list its shares on the Nasdaq Global market under ticker symbol "ICEL".

It said in its Form S-1/A that revenues for the quarter ended June 30 are expected to be in the range of $2.7 million to $2.8 million, compared to $1.3 million in the year-ago period.