Shares of Lyntris Inc. fell 11% in their first day of trading on Wednesday, opening at $15.50 on the New York Stock Exchange. The defense and sensor technology company had priced its initial public offering at $17.50 per share the prior day.
The IPO, which was downsized from earlier plans, generated $297.5 million in proceeds. Lyntris sold 17 million shares, including 5.71 million from the company and 11.29 million from existing stockholders. The offering valued the company at approximately $1.68 billion based on outstanding shares listed in regulatory filings.
Lyntris will not receive proceeds from the shares sold by existing stockholders. The company plans to use net proceeds, along with existing cash and short-term investments, to repay about $60 million outstanding under its revolving credit facility. Remaining funds will support general corporate purposes, including development efforts, working capital, and operational expenses.
Underwriters were granted a 30-day option to purchase up to an additional 2.55 million shares to cover overallotments at the IPO price, excluding underwriting discounts and commissions. Lyntris will not receive proceeds from any shares issued under this overallotment option.
The offering was led by Evercore ISI, Citigroup, and Guggenheim Securities, with BofA Securities serving as a joint book-running manager. Additional bookrunners included Baird, Raymond James, and William Blair.
