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Neumora Therapeutics sets IPO terms, aims to raise up to $264.8 billion

EditorRachael Rajan
Published 2023-09-11, 10:16 a/m
© Pavlo Gonchar / SOPA Images/Sipa via Reuters Connect
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Massachusetts-based biopharmaceutical company, Neumora Therapeutics Inc., has set terms for its initial public offering (IPO) on Monday, with a goal of raising up to $264.8 billion. The company, which specializes in treating brain diseases, plans to offer 14.71 million shares priced between $16 and $18 per share, according to an amended Form S-1 filing with the U.S. Securities and Exchange Commission.

Neumora Therapeutics has applied to list its common stock on The Nasdaq Global Market under the ticker symbol "NMRA". The IPO could value the company at up to $2.74 billion, given the approximately 151.95 million shares outstanding after the IPO.

The company has granted underwriters an option for a period of 30 days to purchase up to an additional 2.21 million shares of its common stock. The underwriters include J.P. Morgan, BofA Securities, Guggenheim Securities, RBC (TSX:RY) Capital Markets and William Blair.

The net proceeds from this offering are estimated at approximately $227.5 million or approximately $262.3 million if the underwriters exercise in full their option to purchase additional shares of common stock based on an assumed IPO price of $17.00 per share.

Neumora Therapeutics intends to use these net proceeds, along with existing cash, cash equivalents and marketable securities, to fund clinical and preclinical development of current programs, research and development activities for additional programs, and other general corporate purposes including working capital.

The remainder of the net proceeds may also be used by the company to in-license, acquire, or invest in complementary technologies, assets or intellectual property.

Over the six months ended June 30, Neumora recorded a net loss of $74.2 million on no revenue, slightly up from a loss of $73.4 million on no revenue in the same period a year ago. The company's decision to go public comes at a time when the Renaissance IPO ETF has rallied 6.5% over the past three months, while the S&P 500 has gained 3.7%.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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