Bicara Therapeutics Announces Pricing of Upsized Initial Public Offering

Rhea-AI Summary

Bicara Therapeutics Inc. (Nasdaq: BCAX), a clinical-stage biopharmaceutical company, has announced the pricing of its upsized initial public offering. The company is offering 17,500,000 shares of common stock at $18.00 per share. Trading is expected to begin on the Nasdaq Global Market on September 13, 2024, under the ticker symbol 'BCAX'. The offering is set to close on September 16, 2024.

Bicara has granted underwriters a 30-day option to purchase up to an additional 2,625,000 shares. The gross proceeds are expected to be approximately $315.00 million, excluding any exercise of the underwriters' option. Morgan Stanley, TD Cowen, Cantor, and Stifel are acting as joint bookrunners for the offering.

Positive

• Successful pricing of upsized IPO, indicating strong investor interest
• Gross proceeds expected to reach approximately $315 million
• Listing on Nasdaq Global Market, providing increased visibility and liquidity
• Option for underwriters to purchase additional shares, potentially increasing proceeds

Negative

• Potential dilution of existing shareholders' ownership due to new share issuance
• Market risks associated with newly public companies
• Increased regulatory scrutiny and reporting requirements as a public company

Insights

Financial Analyst

Bicara Therapeutics' upsized IPO is a significant milestone, raising $315 million at $18 per share. This substantial capital infusion positions the company well for advancing its pipeline of bifunctional therapies for solid tumors. The pricing above the typical $15 to $17 range suggests strong investor interest and confidence in Bicara's potential.

The involvement of major underwriters like Morgan Stanley and TD Cowen adds credibility to the offering. The 30-day option for additional shares could potentially increase proceeds by $47.25 million, providing extra financial flexibility. This successful IPO in a challenging market environment is a positive indicator for both Bicara and the broader biotech sector.

Biotech Industry Expert

Bicara's focus on bifunctional therapies for solid tumors places it in a high-potential niche within oncology. The substantial IPO proceeds will likely accelerate their clinical programs and potentially fund them through critical milestones. However, investors should note that despite the impressive fundraising, Bicara is still a clinical-stage company with inherent risks.

The market's reception to this IPO may signal renewed appetite for innovative biotech companies, particularly those targeting areas of high unmet need. Bicara's success could pave the way for other oncology-focused biotechs considering public offerings, potentially reinvigorating the sector's funding landscape.

Market Strategist

This IPO's success amidst market volatility is noteworthy. The upsized offering and pricing suggest strong institutional demand, which could translate to positive post-IPO performance. However, retail investors should exercise caution, as newly public biotech stocks can be particularly volatile.

The Nasdaq listing provides Bicara with increased visibility and liquidity, potentially attracting a broader investor base. The timing of this IPO, coinciding with a period of renewed interest in the biotech sector, could create a halo effect for peer companies. Investors should monitor Bicara's stock performance as a potential bellwether for market sentiment towards emerging biotech firms.

BOSTON, Sept. 12, 2024 (GLOBE NEWSWIRE) -- Bicara Therapeutics Inc. (Nasdaq: BCAX), a clinical-stage biopharmaceutical company committed to bringing transformative bifunctional therapies to patients with solid tumors, today announced the pricing of its initial public offering of 17,500,000 shares of its common stock at a public offering price of $18.00 per share. Bicara Therapeutics’ shares are expected to begin trading on the Nasdaq Global Market on September 13, 2024 under the ticker symbol “BCAX.” The offering is expected to close on September 16, 2024, subject to the satisfaction of customary closing conditions. In addition, Bicara Therapeutics has granted the underwriters a 30-day option to purchase up to an additional 2,625,000 shares of its common stock at the public offering price, less underwriting discounts and commissions. All of the shares of common stock are being offered by Bicara Therapeutics.

Morgan Stanley, TD Cowen, Cantor and Stifel are acting as joint bookrunners for the offering.

The gross proceeds to Bicara Therapeutics from the initial public offering, before deducting underwriting discounts and commissions and other offering expenses payable by Bicara Therapeutics, are expected to be approximately $315.00 million, excluding any exercise of the underwriters’ option to purchase additional shares of common stock.

A registration statement relating to the shares sold in the initial public offering has been filed with the Securities and Exchange Commission and was declared effective on September 12, 2024. The offering is being made only by means of a prospectus. A copy of the final prospectus, when available, may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2^nd Floor, New York, NY 10014, by telephone at (866) 718-1649, or by email at prospectus@morganstanley.com; TD Securities (USA) LLC, 1 Vanderbilt Avenue, New York, New York 10017, by telephone at (855) 495-9846, or by email at TD.ECM_Prospectus@tdsecurities.com; Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59^th Street, 6^th Floor, New York, New York 10022 or by email at prospectus@cantor.com; or Stifel, Nicolaus & Company, Incorporated, Attention: Prospectus Department, One Montgomery Street, Suite 3700, San Francisco, CA 94104 by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com.

This press release shall not constitute an offer to sell or the 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 registration or qualification under the securities laws of any such state or jurisdiction.

About Bicara Therapeutics

Bicara Therapeutics is a clinical-stage biopharmaceutical company committed to bringing transformative bifunctional therapies to patients with solid tumors. Bicara’s lead asset, ficerafusp alfa, is a bifunctional antibody that combines two clinically validated targets, an epidermal growth factor receptor (EGFR) directed monoclonal antibody with a domain that binds to human transforming growth factor beta (TGF-β). Through this dual-targeting mechanism, ficerafusp alfa has the potential to exert potent anti-tumor activity by simultaneously blocking both cancer cell-intrinsic EGFR survival and proliferation, as well as the immunosuppressive TGF-β signaling within the tumor microenvironment. Ficerafusp alfa is initially being developed in head and neck squamous cell carcinoma, where there remains a significant unmet need.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain disclosures that contain “forward-looking statements,” including, without limitation, statements regarding Bicara Therapeutics’ expectations regarding the commencement of trading of its shares on the Nasdaq Global Market, the completion and timing of the closing of the offering and the anticipated gross proceeds from the offering. Forward-looking statements are based on Bicara Therapeutics’ current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, risks and uncertainties related to the satisfaction of customary closing conditions and the completion of the offering, and the risks inherent in biopharmaceutical product development and clinical trials. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” section of the registration statement filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Bicara Therapeutics undertakes no duty to update such information except as required under applicable law. Readers should not rely upon the information on this page as current or accurate after its publication date.

Contacts

Investors
Rachel Frank
ir@bicara.com

Media
Dan Budwick
1AB
dan@1abmedia.com

FAQ

What is the IPO price for Bicara Therapeutics (BCAX) shares?

Bicara Therapeutics (BCAX) has priced its initial public offering at $18.00 per share.

How many shares is Bicara Therapeutics (BCAX) offering in its IPO?

Bicara Therapeutics (BCAX) is offering 17,500,000 shares of its common stock in the initial public offering.

When will Bicara Therapeutics (BCAX) start trading on the Nasdaq?

Bicara Therapeutics (BCAX) shares are expected to begin trading on the Nasdaq Global Market on September 13, 2024.

What are the expected gross proceeds from Bicara Therapeutics' (BCAX) IPO?

The expected gross proceeds from Bicara Therapeutics' (BCAX) IPO are approximately $315.00 million, before deducting underwriting discounts and other expenses.

Who are the underwriters for Bicara Therapeutics' (BCAX) IPO?

Morgan Stanley, TD Cowen, Cantor, and Stifel are acting as joint bookrunners for Bicara Therapeutics' (BCAX) initial public offering.