International growth plans for Telix Pharmaceuticals (ASX:TLX) – proudly boasting its intentions to list on the NASDAQ for a while now – have come to an anticlimactic end.
The company has confirmed on Friday that despite “incredibly long hours put into this IPO process,” the company is not proceeding with its NASDAQ debut. Shares dipped softly in the first hour of trade.
The move will probably be a wet blanket to many who have watched the NASDAQ hit two dozen all-time-highs this year. It’s not like now is a bad time to enter the market.
And yet, the company’s communications seemed to suggest that on Friday.
“Given the proposed Nasdaq listing was not predicated on the need to raise capital, Telix’s management and Board of Directors have decided not to move forward with the transaction at the terms provided under current market conditions.”
But current market conditions in the US are, on the whole, remarkably robust right now.
The S&P 500 hit a fourth consecutive record close last night, and the NASDAQ is happier than ever.
While it’s true the Megacap 7 are largely in charge, for a company like Telix – already with US exposure, and with stock that recently hit all time highs – it’s hard to correlate a risk-off sentiment from the company with the USA’s YTD broad equity rally.
Notably brief was management commentary surrounding why, exactly, the company has abandoned its plans.
“While this is not our desired outcome Telix’s strategic objectives must align with our duty to existing shareholders,” CEO Dr. Christian Behrenbruch said.
“I’d like to thank my team for the personal commitment and incredibly long hours put into this IPO process.”
To remind, the IPO process Telix embarked on wasn’t necessarily early-stage. Even Morgan Stanley backed the proposed $300M listing.
TLX shares last traded at $16.45.