Coronavirus vaccine developer CureVac BV stated, it has raised $213 million through its initial public offering (IPO) in New York setting the stage for the first stock market debut of a company developing a potential cure for the deadly disease.
According to a source, the German biotechnology company sold 13.33 million shares at $16 apiece, which is the top end of its indicated price range.
The source preferred the cover of anonymity since he/she was not authorized to speak to the media.
The IPO gives CureVac a valuation of about $2.8 billion.
CureVac did not immediately respond to requests for comments.
The German biotech company is researching how to use messenger RNA to treat a wide variety of diseases, including the Wuhan coronavirus. Its experimental approach also been adopted by its peers, including BioNTech SE and Moderna.
By using messenger RNA, researchers aim to compel the body to create its own protein to combat the disease.
Incidentally, in June 2020, the German government had taken a 23% stake in CureVac for around $343 million. The development underscores the company’s research to be of strategic national interest to the German government.
In July, GlaxoSmithKline Plc and the Qatar Investment Authority had also bought a stake in the company.
Incidentally, the company also has the backing of billionaire Bill Gates.It has also secured a $85 million (75 million euro) loan facility from the European Investment Bank in July 2020.
Apart from researching the Wuhan Coronavirus, CureVac is also researching therapies to fight cancer, rabies, and other deadly illnesses.
According to the company’s filing, Dietmar Hopp, co-founder of SAP SE owns a controlling stake in CureVac.
Bank of America, Jefferies, and Credit Suisse are lead underwriters on its IPO.
CureVac shares are due to start trading on Nasdaq on Friday under the symbol ‘CVAC’.