IGM Announces Pricing of Upsized $200 million Public Offering

Rhea-AI Summary

IGM Biosciences, Inc. (NASDAQ: IGMS) announced an upsized public offering of its common stock priced at $90.00 per share, along with pre-funded warrants at $89.99 each. The company aims to raise approximately $200 million in gross proceeds, which will support its growth. The offering includes a 30-day option for underwriters to purchase an additional $30 million in shares. The deal is expected to close around December 11, 2020, pending customary conditions. Jefferies, Stifel, Guggenheim Securities, and RBC Capital Markets are joint book-running managers for this offering.

Positive

• IGM expects to raise approximately $200 million from the offering.
• The funds will support growth initiatives and development of engineered IgM antibodies.

Negative

• The offering may dilute existing shareholders' equity.

MOUNTAIN VIEW, Calif., Dec. 08, 2020 (GLOBE NEWSWIRE) -- IGM Biosciences, Inc. (NASDAQ: IGMS) (IGM) today announced the pricing of its upsized underwritten public offering of shares of its common stock at a price to the public of $90.00 per share and, to certain investors in lieu of common stock, pre-funded warrants to purchase shares of its common stock at a purchase price of $89.99 per each pre-funded warrant, which represents the per share public offering price of common stock less the $0.01 per share exercise price for each such pre-funded warrant. IGM expects to receive total gross proceeds of approximately $200 million from this offering, before deducting the underwriting discounts and commissions and estimated offering expenses payable by IGM. In addition, IGM has granted the underwriters a 30-day option to purchase up to an additional $30.0 million of shares of its common stock at the public offering price, less underwriting discounts and commissions. All of the shares of common stock and pre-funded warrants in the offering will be sold by IGM. The offering is expected to close on or about December 11, 2020, subject to satisfaction of customary closing conditions.

Jefferies, Stifel, Guggenheim Securities and RBC Capital Markets are acting as joint book-running managers for the offering. Baird and Truist Securities are acting as the lead managers for the offering.

The securities in the offering will be offered by IGM pursuant to a Registration Statement on Form S-3, filed with the Securities and Exchange Commission (SEC) on November 5, 2020 and declared effective on November 12, 2020. A final prospectus supplement and accompanying prospectus relating to the offering will be filed with the SEC and may be accessed for free through the SEC’s website at www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus relating to this offering may also be obtained from: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, 2nd Floor, New York, NY 10022, by telephone at (877) 821-7388 or by email at Prospectus_Department@Jefferies.com; Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720 or by email at syndprospectus@stifel.com; Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison, 8th Floor, New York, NY 10017, by telephone at (212) 518-9658 or by email at GSEquityProspectusDelivery@guggenheimpartners.com; or RBC Capital Markets, LLC, 200 Vesey Street, 8th Floor, New York, NY 10281-8098; Attention: Equity Syndicate; by telephone at (877) 822-4089 or by email at equityprospectus@rbccm.com.

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

About IGM Biosciences, Inc.
Headquartered in Mountain View, California, IGM Biosciences is a clinical-stage biotechnology company focused on creating and developing engineered IgM antibodies. Since 2010, IGM Biosciences has worked to overcome the manufacturing and protein engineering hurdles that have limited the therapeutic use of IgM antibodies. Through its efforts, IGM Biosciences has created a proprietary IgM technology platform for the development of IgM antibodies for those clinical indications where their inherent properties may provide advantages as compared to IgG antibodies.

IGM Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. These statements are not based on historical fact and include, but are not limited to, the expected closing of the offering. Forward-looking statements are based on management's current expectations of future events and are subject to a number of risks and uncertainties that could cause actual results to differ materially from those set forth in or implied by such statements. These risks and uncertainties include, but are not limited to, the final terms of the offering, the satisfaction of customary closing conditions, prevailing market conditions and the impact of general economic, industry or political conditions in the United States or internationally. Additional risks and uncertainties, and other important factors, any of which could cause IGM’s actual results to differ from those contained in the forward-looking statements, can be found under the heading “Risk Factors” in IGM’s reports filed with the SEC, in the preliminary prospectus supplement and accompanying prospectus relating to the offering filed with the SEC on December 7, 2020 and other filings that IGM may file with the SEC in the future. IGM assumes no duty or obligation to update or revise any forward-looking statements for any reason, except as required by applicable law.

IGM Biosciences Contact:

Argot Partners
David Pitts
212-600-1902
igmbio@argotpartners.com

FAQ

What is the purpose of IGM Biosciences' stock offering?

IGM Biosciences aims to use the proceeds from the offering to support its growth and development initiatives.

What are the details of IGM Biosciences' public offering?

The offering includes common stock priced at $90.00 per share and pre-funded warrants at $89.99, with total expected proceeds of approximately $200 million.

When is the expected closing date for IGM's stock offering?

The offering is expected to close on or about December 11, 2020, subject to customary closing conditions.

What are the potential risks of IGM Biosciences' offering for shareholders?

The stock offering could lead to dilution of existing shareholders' equity.

Who are the underwriters for IGM's public offering?

Jefferies, Stifel, Guggenheim Securities, and RBC Capital Markets are acting as joint book-running managers for the offering.