NEWTOWN SQUARE, PA — ArriVent BioPharma Inc., a clinical-stage biopharmaceutical company, announced on Friday the pricing of its upsized initial public offering (IPO). The company will issue 9,722,222 shares of common stock at a price of $18.00 per share, in a bid to raise an estimated gross proceeds of $175 million.
The Pennsylvania-based firm has been making strides in the development and commercialization of differentiated medicines aimed at addressing the unmet medical needs of cancer patients. The IPO represents a significant milestone for ArriVent, as it seeks to bolster its financial position and enhance its capacity to advance its pipeline of innovative therapeutics.
The entirety of the common stock is being offered by ArriVent itself, with trading expected to commence on the Nasdaq Global Market under the ticker symbol “AVBP” on January 26, 2024. Provided the customary closing conditions are met, the offering is set to close on January 30, 2024.
Furthermore, ArriVent has granted underwriters a 30-day option to purchase an additional 1,458,333 shares of its common stock at the initial public offering price, less underwriting discounts and commissions. This could potentially increase the total proceeds from the offering.
Goldman Sachs & Co. LLC, Jefferies, and Citigroup are serving as joint book-running managers for the offering, while LifeSci Capital is acting as the lead manager. Investors looking to participate in the offering can obtain a copy of the final prospectus related to the offering from these institutions.
The funds raised from the IPO will be crucial for ArriVent as it continues to develop furmonertinib, its lead development candidate, and other next-generation antibody-drug conjugates. The company’s focus on solid tumors could position it well in a market segment that has seen increasing interest from investors due to the high unmet medical need.
The IPO’s pricing and upsizing underscore the robust investor interest in biopharmaceutical companies like ArriVent, which are exploring novel treatments for cancer. As such, the offering could be of significant interest to investors keen on the healthcare sector, as well as industry insiders tracking the latest developments in cancer therapeutics.
However, like all investments, participating in an IPO carries risks. Potential investors should carefully consider these factors and consult the final prospectus before making an investment decision.
For ArriVent and its stakeholders, the successful completion of the IPO could mark the beginning of a new chapter in its journey to bring innovative cancer treatments to market. However, the company’s future success will hinge on the progress of its clinical trials and the commercial viability of its drug candidates.
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