Telix kicks off $300M NASDAQ IPO offer, backed by Morgan Stanley

Morgan Stanley and Jefferies are among the managers overseeing Telix Pharma’s (ASX:TLX) freshly commenced US IPO process to raise $300M and list on the NASDAQ.

First announced in mid-late May, Telix will offer American Depositary Shares (ADS) on the tech-heavy bourse that sports NVIDIA, Apple and Microsoft as its crown jewels.

Each ADS will represent one ordinary share in Telix.

The underwriters of the deal have an option to acquire up to 15% of the total ADS offering, which includes Morgan Stanley, Jefferies, and two other firms.

Morgan Stanley, if it is isn’t obvious, are a pretty good mob to have around for such a thing – it’s not like they haven’t got clients who’ll be interested.

The move comes at a fortuitous time for Telix Pharmaceuticals. The company’s stock price has been the beneficiary of recent test results the market liked.

At the same time, by looking at US IPO activity, it’s clear the biotech sector broadly is having a rebound in 2024 (which I also mean to include healthcare.)

Jefferies – another investment bank underwriting Telix’s IPO – are reasonably bullish on biotech.

According to their analysts, 2024 is the best environment biotech companies have been in since early COVID, with investment coming back to the notoriously risk-on sector.

The $5.97B market cap Telix is up +14% over the last week; up +17% over the last month, and, up +63% YoY.

TLX last traded at $17.89/sh.