Chimeric Therapeutics (ASX:CHM) share price jumps 88% following its IPO

The Chimeric Therapeutics (ASX:CHM) share price rocketed 88% at one stage on Monday following the completion of its IPO…

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pile of coins and the letters IPO with a red arrow going up, indicating newly listed shares price gains

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The Chimeric Therapeutics (ASX: CHM) share price had a very strong start to life as a listed company on Monday.

The drug development company's shares jumped a whopping 88% at one stage to a high of 37.5 cents.

The Chimeric Therapeutics share price eventually closed the day at 29.5 cents, which is 47.5% higher than its Initial Public Offering (IPO) price of 20 cents.

The Chimeric Therapeutics IPO.

Chimeric Therapeutics' shares landed on the ASX boards today following the completion of an IPO that raised $35 million from investors.

The offer comprised of 175 million shares to raise $35 million at an offer price of $0.20 per share, giving the company a market capitalisation of $66.1 million upon listing.

Management advised that the IPO was met with excellent support from both new and existing institutional, professional, and retail investors within Australia and overseas.

The proceeds from the IPO will be used to fund the phase 1 clinical trial of the CLTX-CAR T at the City of Hope Cancer Centre in Los Angeles and to further develop an oncology focused pipeline of novel cell therapies.

In addition, some of the proceeds will be used to invest in personnel, corporate, and working capital, as well as license fees to City of Hope.

What are Chimeric and CLTX-CAR T?

Chimeric is a clinical stage cell therapy company focused on the development of novel cell therapies for oncology. It is developing CLTX-CAR T, which uses a peptide derived from scorpion toxin, to direct T cells to target glioblastoma (brain cancer).

It has noted potent anti-tumour activity against glioblastoma established in preclinical models.

In light of this, a phase 1 trial of CLTX-CAR T therapy is now underway at the City of Hope cancer centre, where the first patient was dosed in late 2020.

Chimeric's Executive Chairman, Paul Hopper, commented: "The team at Chimeric has been overwhelmed with the support for the IPO and what we believe is a highly promising technology in an attractive area of immuno-oncology. The IPO allows us to further develop the CLTX-CAR T therapy and extend it to patients with an unmet need, including those suffering from GBM as well as other solid tumors."

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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