Artiva Biotherapeutics Announces Pricing of Upsized $167.0 Million Initial Public Offering

Rhea-AI Summary

Artiva Biotherapeutics (Nasdaq: ARTV), a clinical-stage biotechnology company, announced the pricing of its upsized initial public offering (IPO) of 13,920,000 shares of common stock at $12.00 per share. This offering is expected to yield gross proceeds of approximately $167.0 million, before underwriting discounts and offering expenses. Additionally, underwriters have a 30-day option to purchase up to 2,088,000 additional shares at the IPO price. Shares will begin trading on Nasdaq under “ARTV” on July 19, 2024, with the offering closing on July 22, 2024, pending customary conditions. Jefferies, TD Cowen, and Cantor are joint book-running managers, with Wedbush PacGrow and Needham & Company as co-lead managers.

Positive

• Artiva Biotherapeutics raised approximately $167.0 million in gross proceeds from the IPO.
• The IPO was upsized, indicating strong demand.
• Shares are expected to begin trading on Nasdaq, increasing visibility.

Negative

• Potential shareholder dilution due to the issuance of 13,920,000 new shares.
• Underwriters have a 30-day option to purchase an additional 2,088,000 shares, potentially increasing dilution.

Financial Analyst

Artiva Biotherapeutics' upsized IPO is a significant milestone for the company, raising approximately $167.0 million. This influx of capital is critical for a clinical-stage biotech firm as it allows them to fund ongoing research, clinical trials and potential commercialization of their therapies. The IPO's success, reflected in the upsized offering, suggests strong investor confidence in Artiva's future prospects.

For retail investors, the IPO's pricing at $12.00 per share provides a clear entry point. However, it's important to be mindful of the typical volatility associated with biotech stocks, especially those in early clinical stages. The additional 30-day option for underwriters to purchase up to an extra 2,088,000 shares could also impact share price depending on market demand.

The involvement of major underwriters like Jefferies, TD Cowen and Cantor Fitzgerald adds a layer of credibility to the offering, indicating rigorous due diligence has been conducted. Yet, investors should consider that the funds are primarily aimed at risky and expensive clinical trials, where success is not guaranteed. Historical data shows that many clinical-stage biotechs face significant hurdles before achieving profitability.

In summary, while the IPO presents growth potential, it also carries inherent risks. Retail investors should weigh these factors carefully, considering both short-term market movements and long-term strategic goals of Artiva.

Market Research Analyst

Artiva Biotherapeutics' IPO offers a window into the current market appetite for biotech stocks. The upsized nature of the offering indicates robust demand, which is often a positive sign for the sector. The biotechnology market is currently experiencing significant interest due to advancements in cell therapies, which are perceived as the next frontier in treating autoimmune diseases and cancers.

However, retail investors should be cautious and aware of the market's cyclical nature. Biotech stocks often experience peaks and troughs based on clinical trial results and regulatory news. The fact that the stock will trade on the Nasdaq Global Market, a platform known for high-growth and tech-oriented stocks, might attract more attention but also introduces volatility.

The joint book-running managers' reputations play a important role in shaping market perception. Jefferies and TD Cowen are well-regarded in the biotech space, which could enhance investor confidence. Yet, it's vital to watch how the stock performs post-IPO amid broader market conditions and sector-specific news. The market's reaction will likely be a mix of speculation and genuine interest in Artiva's pipeline and prospects.

Overall, the IPO’s success reflects favorable market sentiment, but investors should remain vigilant about the inherent uncertainties in the biotech sector.

SAN DIEGO, July 18, 2024 (GLOBE NEWSWIRE) -- Artiva Biotherapeutics, Inc. (Nasdaq: ARTV), a clinical-stage biotechnology company whose mission is to develop effective, safe and accessible cell therapies for patients with devastating autoimmune diseases and cancers, today announced the pricing of its upsized initial public offering of 13,920,000 shares of common stock at a price to the public of $12.00 per share. All of the shares of common stock are being offered by Artiva. The gross proceeds to Artiva from the offering are expected to be approximately $167.0 million, before deducting underwriting discounts and commissions and estimated offering expenses payable by Artiva. In addition, Artiva has granted the underwriters a 30-day option to purchase up to an additional 2,088,000 shares of common stock at the initial public offering price, less underwriting discounts and commissions.

The shares are expected to begin trading on the Nasdaq Global Market on July 19, 2024, under the symbol “ARTV.” The offering is expected to close on July 22, 2024, subject to the satisfaction of customary closing conditions.

Jefferies, TD Cowen and Cantor are acting as joint book-running managers for the offering. Wedbush PacGrow and Needham & Company are acting as co-lead managers for the offering.

Registration statements relating to the securities being sold in this offering have been filed with the U.S. Securities and Exchange Commission (SEC) and became effective on July 18, 2024. A copy of the registration statements can be accessed through the SEC’s website at www.sec.gov. This offering is being made only by means of a prospectus forming part of the registration statements relating to these securities. When available, a copy of the final prospectus relating to this offering may be obtained from: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com; TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, NY 10017, by telephone at (855) 495-9846, or by email at TD.ECM_Prospectus@tdsecurities.com; or Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, NY 10020, or by email at prospectus@cantor.com.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Artiva Biotherapeutics

Artiva is a clinical-stage biotechnology company whose mission is to develop effective, safe and accessible cell therapies for patients with devastating autoimmune diseases and cancers. Artiva’s lead program, AlloNK®, is an allogeneic, off-the-shelf, non-genetically modified, cryopreserved NK cell therapy candidate designed to enhance the antibody-dependent cellular cytotoxicity effect of monoclonal antibodies to drive B-cell depletion. AlloNK is currently in clinical trials for treatment of systemic lupus erythematosus, for patients with or without lupus nephritis, and in an investigator-initiated basket trial in multiple autoimmune indications. Artiva’s pipeline also includes CAR-NK candidates targeting both solid and hematologic cancers. Artiva was founded in 2019 as a spin out of GC Cell, formerly GC Lab Cell Corporation, a leading healthcare company in the Republic of Korea (Korea), pursuant to a strategic partnership granting Artiva exclusive worldwide rights (excluding Asia, Australia and New Zealand) to GC Cell’s NK cell manufacturing technology and programs.

FAQ

When will Artiva Biotherapeutics start trading on Nasdaq and under what symbol?

Artiva Biotherapeutics will start trading on Nasdaq on July 19, 2024, under the symbol ARTV.

How many shares are being offered in Artiva Biotherapeutics' IPO?

Artiva Biotherapeutics is offering 13,920,000 shares of common stock in its IPO.

What is the price per share for Artiva Biotherapeutics' IPO?

The price per share for Artiva Biotherapeutics' IPO is $12.00.

What are the gross proceeds expected from Artiva Biotherapeutics' IPO?

The gross proceeds expected from Artiva Biotherapeutics' IPO are approximately $167.0 million.

Do underwriters have an option to purchase additional shares in Artiva Biotherapeutics' IPO?

Yes, underwriters have a 30-day option to purchase up to an additional 2,088,000 shares.