AbCellera Biologics - Stocktrades Canada

Hey!

I am interested in this Vancouver company, AbCellera Biologics, which is set to IPO this week. Just wondering if you have any thoughts on this?

https://biv.com/article/2020/12/vancouvers-abcellera-now-aiming-raise-much-us450m-ipo

https://investmentu.com/abcellera-ipo-stock/

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Asked on December 9, 2020 6:51 pm

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Hi there,

As this is a U.S. IPO, Canadians can't partake in the offering. That means, the only option is to buy on the day of IPO which is a risky proposition. It looks like there is a high demand for the company's stock as it initially set out to raise $200M but is now going to raise more than double that. Typically this is an indicator of strong demand.

From what I can tell, ABCL is growing at a pretty decent clip. While operating earnings are volatile, revenue and cash flow are growing quite rapidly. In terms of valuations, it appears that ABCL is targeting a higher multiple than its peers. Given this, I'd say that the IPO is fully priced.

Mat

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Posted by Mathieu Litalien

Answered on December 10, 2020 4:25 am

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