Key Highlights

● Lycia Therapeutics priced an upsized IPO of 17,640,000 shares at $18.00 each.

● The offering raised about $317.5 million in gross proceeds.

● Shares are set to begin trading on the Nasdaq on Friday, October 23.

● The S&P 500 health care sector hit a record high on Thursday.

Lycia Therapeutics (NASDAQ:LYCA) priced an upsized initial public offering on Thursday, October 22, and its shares are set to begin trading on the Nasdaq Global Select Market on Friday, October 23, under the symbol LYCA.

The company sold 17,640,000 shares at $18.00 each, raising about $317.5 million in gross proceeds, according to a company announcement. The offering was upsized, meaning the company sold more shares than it had initially planned.

Deal details

Lycia has also granted underwriters a 30-day option to buy up to 2,646,000 additional shares. The offering is expected to close on October 26.

Jefferies, TD Cowen, Evercore ISI and Guggenheim are acting as bookrunners, with LifeSci Capital serving as a passive bookrunner.

Upsizing an IPO is generally read as a positive signal. It typically indicates underwriters saw enough orders to sell additional stock at the agreed price. Friday's trading will show whether that demand carries over into the open market.

A test for biotech listings

Lycia's debut will come at an interesting moment for health care stocks. The S&P 500 health care sector hit a record high on Thursday, even as the broader market fell. Johnson & Johnson (NYSE:JNJ) climbed to $267.61, and Amgen (NASDAQ:AMGN) rose to $447.28 as investors rotated into defensive sectors.

At the same time, biotech sentiment was tested by Moderna (NASDAQ:MRNA), which was the worst performer in the S&P 500 after Phase 3 melanoma vaccine data with Merck (NYSE:MRK) reportedly leaked before its scheduled presentation. Moderna was trading at $202.63.

Small biotech stocks were mixed. Biohaven (NYSE:BHVN) jumped after the FDA accepted its resubmitted application for troriluzole in spinocerebellar ataxia. Korro Bio soared on preclinical data. Avalo Therapeutics tumbled after a rival's trial results.

Recent IPOs have had mixed fortunes

Not every new listing of 2026 has held its gains. SpaceX, now public and in the Nasdaq-100, was trading at $144.75 on Thursday, below its IPO price. Forgent Power Solutions also fell below its IPO price and hit a record low on Thursday.

Other recent biotech listings have fared better. Vogenx, which priced its IPO at $13, traded around $24.89 before the bell on Thursday after jumping.

The market backdrop

Lycia's debut follows a choppy session. The Nasdaq Composite sank 694 points to 26,008.86, its steepest drop since June 5, as artificial-intelligence and chip stocks sold off after the spending plans of Meta Platforms (NASDAQ:META) and the cautious guidance of Lam Research (NASDAQ:LRCX). The S&P 500 fell 93.74 points to 7,663.43.

Beneath the surface, however, the market was healthier. About two of every three S&P 500 stocks rose as investors moved into staples, health care and other defensive groups. The VIX volatility index jumped 2.35 points to 19.03, a sign of a more nervous market for new issues. US stock futures were roughly flat on Thursday evening.

Friday's Opening Price Versus $18.00

The key number on Friday will be Lycia's opening price relative to its $18.00 offer price. Investors will also watch trading volume and whether the shares hold their level through the session.

The broader IPO pipeline may take cues from how Lycia trades. Health care investors will also watch Moderna's full melanoma data, due Saturday at the ESMO conference in Madrid.