Renovis Post-IPO Price Action
Interesting Post-IPO action for Renovis. Apparently, the "smart money" would not pay more than $12 per share in the initial IPO, below estimates of $13-15. Likely, they "knew something" about Renovis' patent problems.
These patent issues are no secret. E.g., they apparently caused the original investors to pull the plug on Centaur and then enabled Renovis to buy Centaur's intellectual property ("IP") really cheap. It is even in the prospectus, if you know where to look. And not just in the boiler plate. But far from "full disclosure".
Perceiving underpricing and not knowing the true reason, the market then bid the stock from $12 up to briefly over $17 in just two days.
This suggests that, without the IP problems known to "smart money", Renovis would likely have gone at the high end of estimates, like most other IPO's yesterday. Maybe even higher. But without these IP problems, Renovis would not have gotten such a deal from Centaur.
Still, too bad for Renovis that they missed out on this run-up. Had the IPO gone for $15, they would have collected an additional $16.5 million. If the IPO had gone for $16 ( RNVS closed today at $16.20 ), an additional $22 million.
Disclosure: Likely, my IP is one part ( but certainly not all ) of the "prior art" causing the IP problems. See nitrone.com for the details. |
