Australian biotechnology firm Telix Pharmaceuticals Ltd., whose U.S. shares were set to debut trading on Friday, canceled plans for an estimated $202 million U.S. initial public offering, citing unfavorable market conditions.

Telix Pharmaceuticals Pulls US IPO : Initial Plans and Pricing

Melbourne-based Telix intended to raise about $202 million by offering 17 million shares at $11.87 each, a price similar to recent trading on the Australian Securities Exchange, where the company is already listed. Telix said it decided against proceeding with a U.S. IPO because investors sought discounts below its preferred pricing levels. U.S. shares of Telix were set to trade on the Nasdaq exchange under the symbol "TLX."

Telix Pharmaceuticals Pulls US IPO : Decision to Withdraw

"Given the proposed Nasdaq listing was not predicated on the need to raise capital, Telix's management and board of directors have decided not to move forward with the transaction at the terms provided under current market conditions," Telix said in a statement released late on Thursday. "The company did not feel that the proposed discounts were aligned with its duty to its existing shareholders."

Legal Representation

WilmerHale represented Telix on U.S. legal matters, while Herbert Smith Freehills LLP represented the company on Australian legal matters on the IPO. Latham & Watkins LLP was representing the underwriters on U.S. legal matters, while Allens represented underwriters on Australian legal matters.

Reasons for U.S. Listings

Foreign companies often seek to list in the U.S. seeking a deeper pool of investors that are available here compared with their home markets. U.S. listings can also provide more liquidity for shareholders, while increasing opportunities for future capital raises.

Telix Pharmaceuticals Pulls US IPO : Use of Proceeds

Telix had said proceeds from its U.S. IPO would fund development of drugs treating kidney and brain cancer and to expand its global supply chain and manufacturing capabilities. The commercial-stage company develops therapeutic and diagnostic radiopharmaceuticals, describing itself as a "profitable, cash generative" business.

The company reported a profit of 5.2 million Australian dollars ($3.4 million) on AU$502.5 million ($332.5 million) in revenue last year, according to filings.

Market Conditions and Comparisons

The canceled listing comes as IPOs are generally rising, but the market is still beset by starts and stops. Aluminum recycling giant Novelis Inc. and online casino games developer Games Global canceled or postponed IPOs over the past month, citing market conditions.

Separately, artificial intelligence-powered diagnostics firm Tempus AI Inc. priced a $411 million IPO at the top of its range on Thursday and saw shares rally in debut trading Friday.

Telix Pharmaceuticals Pulls US IPO : Confidential Plans and Future Prospects

Telix submitted confidential plans for a U.S. IPO in January with the U.S. Securities and Exchange Commission. Since then, the company said it has achieved commercially significant milestones on its drug candidates, plus several strategic acquisitions.

Telix has also filed for additional approvals with the U.S. Food and Drug Administration. Telix also said it plans on expanding its U.S. commercial team to eventually launch new products Zircaix, Pixclara, and a drug called TLX007-CDx targeting prostate cancer.

Telix did not say whether it plans to consider a future listing in the U.S. Since Telix began planning its IPO at the start of the year, the company said its share price rose from 9.53 Australian dollars to AU$16.46 by market close Wednesday.

"While this is not our desired outcome, Telix's strategic objectives must align with our duty to existing shareholders," CEO Christian Behrenbruch said in a statement regarding the cancellation of its U.S. IPO. "I'd like to thank my team for the personal commitment and incredibly long hours put into this IPO process."

Telix said trading of its Australian shares, which was temporarily halted on Thursday, would resume on Monday.