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New York • Shares of Otonomy were rising Wednesday after the biotech drug developer's initial public offering raised $100 million.

The offering of 6.3 million shares, 1 million more than initially predicted, priced at $16 each, the high end of Otonomy's estimate. That suggests strong demand for the shares and likelihood that the company raised more money than it had expected.

San Diego-based Otonomy Inc. is developing treatments for ear diseases. It plans to use the proceeds of its IPO to get regulatory approval for its antibiotic AuriPro and sell the drug, and to research other products.

Otonomy stock is up $1.40, or 9 percent, to $17.40 in afternoon trading on the Nasdaq. Its ticker symbol is "OTIC."