(Reuters) - Biotechnology company ADC Therapeutics SA ADCT.N postponed its planned $200 million (162.34 million pounds) U.S. initial public offering on Wednesday, citing adverse market conditions as it became the third company to pull a planned IPO in recent days.
It was the latest black eye for the U.S. IPO market. Earlier this week, WeWork owner The We Company said it was putting its plans for an IPO on ice. Entertainment and talent agency Endeavor Group Holdings pulled its listing last week.
Even though the stock market is hovering near all-time highs, investors are worried that the poor stock trading performance of companies such as ride-hailing leader Uber Technologies Inc (UBER.N) following their IPOs could indicate that pumped-up valuations listings have reached a peak. Several of the companies that recently have completed IPOs, such as fitness start-up Peloton Interactive PTON.O and teeth-straightening company SmileDirectClub SDC.O, have seen their shares trade poorly.
While APC’s planned IPO was relatively small in size, the postponement could unnerve investors further because biotechnology offerings are typically assessed on the prospects of their drugs and are less sensitive to wider market turbulence.
Lausanne, Switzerland-based ADC, whose drugs under development target haematological malignancies and solid tumours, was one of four biotechnology companies set to debut on the U.S. stock market on Thursday. Aprea Therapeutics Inc APRE.O, Frequency Therapeutics Inc FREQ.O and Viela Bio VIE.O were due to price their IPO later on Wednesday.
So far this year, 21 biopharmaceutical companies have gone public on U.S. exchanges, accounting for about one fifth of the total number of IPOs, according to Refinitiv data.
Reporting by Rebecca Spalding in New York; Editing by Leslie Adler