Emergent Prices IPO

The stock falls in its first day of trading.
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Vaccine developer

Emergent Biosolutions

(EBS) - Get Report

priced its initial public offering well below its previously expected range.

The company offered 5 million shares for $12.50 each, whereas it had been hoping for a price of $14 to $16 a share, according to filings with the

Securities and Exchange Commission

.

Proceeds from the offering will be used to fund the development of bio-defense and commercial products, a portion of construction and other costs related to its manufacturing facility in Lansing, Mich., initial planning of a plant in Frederick, Md., and general corporate purposes.

The company's underwriters will have a 30-day option to purchase up to 480,000 additional shares from selling stockholders and as many as 270,000 added shares from Emergent.

Emergent will raise roughly $54.7 million, or approximately $57.8 million if the underwriters exercise their over-allotment option in full. Shares of Emergent closed Wednesday at $11.70.