New Psychedelic Drug Stock Jumps In Debut After Upsized IPO Prices At High End

Atai Life Sciences (ATAI), a backer of psychedelic-drug developers, began trading Friday, making it the latest such company to hit a major exchange as it tries to bring hallucinogens to the world of therapeutics…

The Germany-based company, backed by billionaire investor and PayPal (PYPL) co-founder Peter Thiel, priced its IPO at $15, compared compared to an expected range of $13 and $15.

The Atai IPO will generate gross proceeds of $225 million from the sale of 15 million shares. Underwriters also have an option to buy another 2.25 million shares.

Last week, Atai said it planned to offer 14,286,000 shares in its IPO. The offering also included a 30-day option for the underwriters to buy up to 2,142,900 additional shares.

Atai stock was up 22% to 18.26 on the stock market today, paring gains after surging more than 50% earlier.

Credit Suisse, Citigroup, Cowen, and Berenberg were book-running managers for the offering. Other book-running managers included Cantor, RBC Capital Markets and Canaccord Genuity, a big dealmaker in the cannabis industry that has shown up in psychedelics as well.

Psychedelic Drug Stocks

The Atai IPO follows that of Compass Pathways (CMPS), which is researching a therapy regimen that uses a crystalline form of psilocybin. Atai is also a large shareholder in Compass.

MindMed (MNMD), another psychedelics developer, listed on the Nasdaq in April. Others trade in Canada.

MindMed stock rallied 1.7% Friday, while Compass Pathways was down 0.1%.

More psychedelic drug companies…

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