Ironwood raises $188M in IPO but takes a big price cut
Summary
Ironwood Pharmaceuticals finally made its long-awaited leap into the public market, but ended up falling far short of its very ambitious goal. That amounted to the biggest price cut for an IPO this year, but Ironwood nevertheless raised $188 million through an offering that valued the company at $1.1 billion. Ironwood, which is well into its late-stage program to validate linaclotide, raised questions early on when it unveiled plans to push for a 31 percent premium over the companys fair market valuation. "Buyers are going to be a little bit more in control in pricing, and Ironwood is a classic example," Fifth Third Asset Managements Scott Billeadeau told Bloomberg. "The deals are going to go through valuation haircuts as they come into the marketplace until we get some stabilization in the broad markets," David Menlow, president of Millburn, New Jersey-based IPOfinancial.com, told Bloomberg TV.