Alumis downsizes IPO, tacks on private placement hours before joining Nasdaq
28 Jun 2024
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Source: FierceBiotech
Alongside the IPO, Alumis said it has also arranged a private placement of 2.5 million shares of common stock at $16 apiece to an existing investor.
In the latest sign that biotech’s return to the public markets remains somewhat lackluster, Alumis has downsized its IPO as the company prepares to list on the Nasdaq this morning.
The biotech started the week announcing that it planned to offer 17.6 million shares of its common stock at $17 apiece. But Alumis revealed in a late-night June 27 release that it has now reduced the offer to 13.1 million shares for $16 each.
An additional chunk of shares to be offered to underwriters has also been shrunk from 2.6 million to 1.9 million.
Alongside the IPO, Alumis said it has now arranged a private placement of 2.5 million shares of common stock at $16 apiece to AyurMaya Capital Management Fund, one of its existing investors. The concurrent private placement is likely to close by July 22.
But even when the proceeds from the IPO—excluding the underwriters’ option—and the private placement are combined, the total proceeds for Alumis are still only expected to reach $250 million before various related expenses are deducted.
It's a notable drop on the $274 million that as recently as Monday Alumis had been expecting to make from the IPO alone even after the expenses were deducted.
The company’s shares are set to start trading on the Nasdaq this morning under the ticker “ALMS.” The biotech has previously said that it plans to use part of its IPO haul to advance the development of its lead asset, an allosteric tyrosine kinase 2 (TYK2) inhibitor called ESK-001, into multiple phase 3 trials in moderate to severe plaque psoriasis later this year.
Alumis will also complete ongoing phase 2 trials in a type of eye inflammation called uveitis as well as in systemic lupus erythematosus.
In its announcement yesterday, the company didn’t set out the reasons for reducing its IPO ambitions. However, it hasn’t been smooth sailing for many of the biotechs that have jumped to the public markets this year, with most seeing their valuations drop in the subsequent months.
Australia-listed Telix Pharmaceuticals’ last-minute decision to pull out of its Nasdaq IPO plans earlier this month due to its dissatisfaction with the terms on offer was another reminder that getting onto the public markets is rarely the end of the story.
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