Clinical-stage biopharmaceutical company Neumora Therapeutics and radiopharmaceutical therapeutics company RayzeBio both announced their plans for initial public offerings (IPO) on Monday.
Neumora Therapeutics, backed by biotechnology company Amgen (NASDAQ:AMGN), based in Thousand Oaks, California, plans to sell 14.7 million shares at between $16 and $18 each. At the midpoint of this range, the Watertown, Massachusetts-based company expects net proceeds of approximately $227.5 million. This figure could rise to roughly $262.3 million if underwriters exercise an option to purchase an additional 2.21 million shares. The company, which focuses on brain diseases, anticipates that these funds, combined with its existing resources, will cover its working capital and capital expenditure needs for at least the next 30 months.
Following the IPO, and assuming the exercise of the overallotment option, Neumora Therapeutics will have nearly 154.2 million shares outstanding. This would result in a market capitalization exceeding $2.6 billion at the $17 per share pricing midpoint. Amgen currently holds a 24.4% stake in Neumora, which has applied to list its shares on the NASDAQ Global Market under the ticker symbol NMRA.
On the other hand, San Diego-based RayzeBio plans to offer more than 13.2 million shares at between $16 and $18 apiece in its IPO. At the $17 midpoint of that range, the company expects net proceeds of about $206.5 million, potentially increasing to roughly $240.7 million if underwriters exercise an option to buy an additional 2.16 million shares. The offering also includes approximately 1.16 million shares being sold by current investor PeptiDream, bringing the total size of the IPO to nearly 14.4 million shares.
RayzeBio, which has a pipeline of multiple drug candidates for treating cancer patients, predicts that the proceeds from the IPO, along with its current resources, will be sufficient to fund operations through at least 2025. Assuming exercise of the overallotment option, RayzeBio will have nearly 57.5 million shares outstanding after the IPO, leading to a market capitalization of about $977 million at the $17-a-share pricing midpoint. RayzeBio has also applied to list its shares on the NASDAQ Global Market under the symbol RYZB.
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