By Prakhar Srivastava
Feb 6 (Reuters) – Agomab Therapeutics secured a valuation of $716.4 million after its shares fell about 8% in their debut on Friday, as investors remain selective about new offerings.
The Belgium-based company’s stock opened at $14.70, below its offer price of $16 apiece.
The clinical-stage biopharmaceutical company raised $200 million in its U.S. initial public offering on Thursday, after it sold 12.5 million American Depositary Shares within its marketed range of $15 to $17 apiece.
Agomab’s debut comes at a time when biopharmaceutical companies are beginning to return to public markets following subdued activity in 2025.
However, a sharp selloff in U.S. software and data-services stocks this week, driven by fears that rapidly advancing AI capabilities could upend existing business models, has made investors selective about new offerings.
“Investors are more cautious about clinical-stage companies that do not yet have products on the market,” said IPOX Research Associate Lukas Muehlbauer.
“However, the fact that the listing went ahead proves that the window for drugmakers remains open, even while it is effectively closed for software firms.”
Eikon Therapeutics and Forgent Power opened below their offering price on their respective debuts on Thursday, while Liftoff Mobile postponed its planned U.S. listing amid the software sector selloff.
Jennifer Garner’s Once Upon a Farm, which began trading on Friday alongside Agomab, made a strong debut.
Agomab is focused on developing treatments for immune and inflammatory diseases, starting with chronic fibrotic conditions.
Its pipeline includes ontunisertib (AGMB-129), an oral, gut-restricted ALK5 inhibitor for fibrostenosing Crohn’s disease, a severe form of Crohn’s characterized by inflammation-driven strictures that often lead to surgery.
J.P. Morgan, Morgan Stanley, Leerink Partners and Van Lanschot Kempen were underwriters for the offering.
(Reporting by Prakhar Srivastava in Bengaluru; Editing by Shailesh Kuber and Alan Barona)
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