The Nasdaq IPO of Rosetta Genomics Ltd. is reportedly not going according to plan. The company is trying to raise $33-39 million at a company value of $116-137 million, but may have to settle for a lower value or even wait for better times.
News site IPOhome provides further evidence of Rosetta Genomics’ problems in becoming a public company. It reports that the pricing of the offering was due to take place on October 4. However, the next day, “IPOhome” reports that the pricing is “Day to day”, which indicates that the main offering failed to obtain enough orders for the company’s share.
It will not be a surprise if Rosetta Genomics fails to complete its IPO as planned. It is a biotechnology company that has no revenues yet, and does not expect profits in the foreseeable future. The chief underwriter for the offering is CE Unterberg Towbin and Oppenheimer & Co. and Maxim Capital are the co-runners.
Rosetta Genomics has developed a proprietary computer algorithm for discovering microRNA sequences, and a method for linking these sequences with body functions. The company hopes to use this information to develop diagnostic techniques and treatments.
Published by Globes [online], Israel business news - www.globes.co.il - on October 9, 2006
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