From www.4-traders.com
09/21/2016–Shares of Novan, the Durham pharmaceutical startup, were trading 64 percent higher in its first day of trading Wednesday following a successful initial public offering.
Shares of Novan began trading on Nasdaq under the ticker symbol NOVN after its shares were priced Tuesday evening at $11 — at the low end of what it was hoping for.
Investors apparently found the price appealing. Shares were trading at $18, up $7, around noon Wednesday.
Novan had reported in a filing with the Securities and Exchange Commission earlier this month that it was aiming to price its shares between $11 and $13.
The skin products company has no products on the market and plans to use the money it raises in the IPO to finance development of its lead product from regulatory application to commercial sale in the United States. It is developing dermatological products to treat five conditions, including acne, genital warts and toenail fungus.
The 63-employee company is selling 4.1 million shares; all of the common stock is being offered by Novan. Its underwriters have a 30-day option to purchase an additional 615,000 shares of common stock at the initial public offering price, minus the underwriting discount. The offering is expected to close on Sept. 26.
Novan launched in 2006 as a spin-out from UNC-Chapel Hill. It is backed by prominent Triangle executives, including former GlaxoWellcome CEO Robert Ingram, former Goodyear Tire CEO Robert Keegan, and F. Neal Hunter, the former CEO and co-founder of CREE, the Durham LED lighting company.
| UNC-CH
