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Company Overview
An international pioneering biotechnology company, Virax Cayman specializes in the marketing, sales, and distribution of medical technologies, personal protective equipment, and diagnostic test kits for the treatment of viral infections. The company has a specific focus on immunology.
Key Highlights
Primary Offering: The company is issuing 1,350,000 shares at USD 5.00. The corporate assessments for the net proceeds from this offering, assuming an initial public offering at USD 5.00 per share and full execution of the underwriters' option to acquire further shares, will be around USD 7,037,725. Additional 7% underwriter warrants are also granted; these warrants have a cashless exercise clause and are exercisable for three years after the date of issuance.
Use of proceeds:
Dividend policy: The firm did not declare any dividends for the fiscal years ending March 31, 2021, and 2020. The firm also aims to keep all available money and any future revenues to fund the growth and expansion of its business and does not anticipate declaring or paying dividends in the near future.
Sector Analysis
Financial Highlights (Expressed in USD):
Key Management Highlights
Risk Associated (High
Investment in the IPO of “VRAX” is exposed to a variety of risks such as:
Conclusion
VRAX reported decent financial performance in FY21 with surge in the topline and narrowing losses on a YoY basis. However, given the variety of uncertainties hovering over the global financial markets, a listing gain on a loss-making company could be challenging. However, the industry in which VRAX operates is growing decently and expected to grow moderately in the coming years.
Hence, Virax Biolabs Group Limited (VRAX) IPO looks "Neutral” at the current price and in the present market scenario, given the risks associated.
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