Four biotech IPOs raised $784 million while smaller issuers warn of going-concern doubt

Four US biotechnology companies priced initial public offerings in the weeks to October 22, and together they raised about $784 million before expenses, a sum computed from the totals in their prospectuses. In the same weeks, much smaller issuers filed to list with warnings about their ability to continue operating, and a payments company that operates in Africa and the Middle East set a price range that could raise up to $336 million. This analysis compares those listings: who is raising money, how much, on what terms, and what the filings say about the risks. It cannot say how the shares will trade, because none of the filings includes trading data.

Four biotechs raise $784 million

The largest was Lycia Therapeutics, which priced 17,640,000 shares at $18.00 for a total of $317.52 million, and was approved to list on the Nasdaq Global Select Market under the symbol LYCA. The clinical-stage company is designed to degrade disease-causing extracellular proteins, with an initial focus on autoimmune, inflammatory and allergic diseases. It reported a net loss of $36.5 million for 2025 and $19.2 million for the six months ended June 30, 2026, with an accumulated deficit of $136.8 million.

City Therapeutics, which develops RNA-interference medicines, raised $200 million by selling 11,111,111 shares at $18.00 on the Nasdaq Global Market under the symbol CTY. A convertible note held by Biogen converts into 2,133,788 shares at 85% of the offering price. The company had $169.6 million of cash and cash equivalents and an accumulated deficit of $142.5 million at June 30.

Iambic, an artificial-intelligence drug-discovery company, priced 9,375,000 shares at $16.00 for $150 million. In its prospectus, ARK Investment Management, an existing investor, and Duquesne Family Office indicated interest in purchasing up to an aggregate of $60.0 million of the shares. Iambic reported a net loss of $77,295 thousand in 2025 and said that its cash, together with the proceeds, would fund operations into or through the fourth quarter of 2028.

TRex Bio sold 8,333,334 shares at $14.00 for $116.67 million. Eli Lilly indicated an interest in purchasing shares at the IPO price in an amount which, combined with the shares it already owns, would not exceed 19.9% of the shares outstanding after the offering. TRex reported net losses of $34.8 million in 2025 and said it expects to continue to incur significant losses for the foreseeable future.

What the four have in common

All four are clinical-stage companies that report losses, which is normal for the sector, and they describe themselves in their prospectuses as emerging growth companies. Two of the four disclose that investors indicated interest in buying shares in the offering: ARK and Duquesne at Iambic, and Lilly at TRex. City has a Biogen note that converts into shares at a discount to the offering price. The indications are not purchases, and the prospectuses do not say how many shares were finally bought.

The prices are also similar. Two of the offerings, Lycia and City, priced at $18.00; Iambic priced at $16.00 and TRex at $14.00. The sources do not give the ranges the companies marketed to investors, so the desk cannot say whether any priced above or below its range.

A much smaller scale: Amaero, FireFly and Neo

The smaller issuers show a different pattern. Amaero, a producer of metal powders for additive manufacturing that already trades in Australia through CHESS Depositary Interests, set a Nasdaq offering price of $4.25 per share for 4,705,883 shares. The last reported Australian price of A$0.155 per depositary interest, which equals about $4.33 per share, makes the Nasdaq price 1.8% lower (computed). Its prospectus says that with cash of $13.6 million at June 30, if it does not obtain additional funding, it may not be able to continue as a going concern.

FireFly, a maker of robotic mowers, filed a prospectus dated October 7 for a direct listing on the Nasdaq Global Market, in which registered stockholders may resell up to 27,134,738 shares. Unlike an initial public offering, the resale is not underwritten on a firm-commitment basis, and the absence of a predetermined price could make the price more volatile. FireFly's net revenue was $47,178 thousand in 2025 against $42,477 thousand in 2024, an increase of 11.1% (computed), and $30,502 thousand in the first six months of 2026 against $22,909 thousand, an increase of 33.1% (computed). It also states that there is substantial doubt about its ability to continue as a going concern and that it will need additional financing.

Neo Aeronautics, which designs eVTOL and cVTOL air vehicles, filed a preliminary prospectus for an offering on the NYSE American at an estimated price of US$4.00 to US$6.00 per share. The company has an accumulated deficit of S$5,042,948 and says that substantial doubt exists about its ability to continue as a going concern.

A fintech outside the biotech group: OPay

OPay, a digital financial platform based in Singapore that operates in Nigeria and Egypt, filed a preliminary prospectus on October 23 to offer 16,000,000 American depositary shares at US$19.00 to US$21.00 each, or up to US$336 million. Investors have indicated non-binding interest in up to an aggregate of US$270 million worth of the shares. OPay's revenues increased from US$205.7 million in 2024 to US$536.3 million in 2025, and it moved from a net loss of US$50.8 million to net income of US$72.5 million. In the first half of 2026 revenues were US$467.1 million against US$197.5 million, and net income was US$90.9 million against US$21.7 million. The company discloses that Nigeria contributed 89.5% of revenue in the first half of 2026. It also cites Frost & Sullivan for a 9.9% share by monthly active users in Africa and the Middle East.

What the filings show

The pattern is one of dispersion. The four biotechs raised between $116.7 million and $317.5 million while reporting losses, and Iambic says its cash runs into or through the fourth quarter of 2028. OPay reports profits. The smaller issuers raise or seek much less, or none at all in FireFly's case, and state doubt about continuing operations. The filings do not show whether investors treat these groups differently in trading, and none of the sources reports first-day results. The next items to watch are the final pricing of OPay's offering and the first reports on trading in the new listings.