Rapport Therapeutics Announces Closing of $174 Million Initial Public Offering, Including Full Exercise of Underwriters’ Option to Purchase Additional Shares and Concurrent Private Placement
Rapport Therapeutics, a clinical-stage biotechnology firm specializing in central nervous system disorder treatments, closed its initial public offering (IPO) on June 12, 2024. The IPO involved 9,200,000 shares of common stock at $17.00 per share, totaling approximately $174 million, including the full exercise of the underwriters' option to purchase additional shares and a concurrent private placement. Trading began on June 7, 2024, under the ticker symbol 'RAPP'. Goldman Sachs, Jefferies, TD Cowen, and Stifel managed the offering. The concurrent private placement involved selling 1,058,824 shares to existing stockholders. The proceeds will be used to further Rapport's development of small molecule medicines.
- Raised approximately $174 million through IPO and private placement.
- Successful full exercise of underwriters' option to purchase additional shares.
- Strong interest from existing stockholders in the concurrent private placement.
- Shares began trading on Nasdaq Global Market under the ticker 'RAPP'.
- Managed by reputable firms: Goldman Sachs, Jefferies, TD Cowen, and Stifel.
- Gross proceeds of $174 million before deducting underwriting discounts, commissions, and other expenses.
- Potential shareholder dilution due to the issuance of additional shares.
- Private placement shares were not registered under the Securities Act of 1933.
Insights
Raising $174 million through an initial public offering (IPO) is a significant milestone for Rapport Therapeutics. The fact that the underwriters fully exercised their option to purchase additional shares shows strong investor confidence. This injection of capital will likely be used to further the company's clinical trials and R&D activities.
From a financial perspective, generating this level of proceeds without needing to sell shares at a discount indicates a healthy demand for the stock. However, retail investors should be cautious about the volatility typical of newly-listed biotech firms. These companies often face significant clinical, regulatory and market risks that can lead to dramatic fluctuations in stock price.
The concurrent private placement to existing stockholders adds another layer of confidence, suggesting that those familiar with the company have a positive outlook on its future. However, it’s important to monitor the use of the newly raised funds and their impact on the company's pipeline development.
Rapport Therapeutics operates in the central nervous system (CNS) disorder therapeutics market, which is both competitive and highly lucrative. The success of the IPO and the concurrent private placement could provide the financial stability needed to advance its pipeline and bring new treatments to market.
It's worth noting that the CNS therapeutic space is characterized by lengthy clinical trials and significant regulatory hurdles. Investors need to be prepared for potential delays and setbacks. However, the high unmet need in this area could lead to substantial market opportunities if Rapport's therapies prove to be successful.
Retail investors should observe how Rapport plans to allocate these funds towards research and development and whether the company can achieve key clinical milestones on time. The FDA approval process is rigorous and the market’s reaction will hinge on positive trial results and regulatory endorsements.
BOSTON and SAN DIEGO, June 12, 2024 (GLOBE NEWSWIRE) -- Rapport Therapeutics, Inc. (Nasdaq: RAPP), a clinical-stage biotechnology company focused on discovery and development of transformational small molecule medicines for patients suffering from central nervous system disorders, today announced the closing of its initial public offering of 9,200,000 shares of its common stock at a public offering price of
Goldman Sachs & Co. LLC, Jefferies, TD Cowen and Stifel acted as joint book-running managers for the offering.
In addition to the shares sold in the initial public offering, Rapport today announced the closing on June 10, 2024, of its sale of 1,058,824 shares of common stock at the public offering price per share in a concurrent private placement to certain of its existing stockholders. The sale of the shares of common stock in the concurrent private placement was not registered under the Securities Act of 1933, as amended.
The gross proceeds to Rapport from the initial public offering, including full exercise of the underwriters’ option to purchase additional shares and the concurrent private placement, before deducting underwriting discounts and commissions, placement agent fees and offering and private placement expenses payable by Rapport, were approximately
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 June 6, 2024. The offering was made only by means of a prospectus. A copy of the final prospectus may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at Prospectus-ny@ny.email.gs.com; 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 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 Rapport Therapeutics
Rapport Therapeutics is a clinical-stage biotechnology company dedicated to discovering and developing transformational precision neuromedicines for patients suffering from central nervous system (CNS) disorders. The Company’s founders have made pioneering discoveries related to the function of receptor associated proteins (RAPs) in the brain. Their findings form the basis of Rapport’s RAP technology platform, which enables a differentiated approach to generate precision small molecule product candidates with the potential to overcome many limitations of conventional neurology drug discovery. Rapport’s precision neuroscience pipeline includes the Company’s lead clinical program, RAP-219, designed to achieve neuroanatomical specificity through its selective targeting of a RAP expressed in only discrete regions of the brain. The Company is currently advancing RAP-219 in clinical trials in focal epilepsy, peripheral neuropathic pain, and bipolar disorder. Additional preclinical and late-stage discovery stage programs are also underway, targeting CNS disorders including chronic pain and hearing disorders.
Contacts
Investors and Media:
Julie DiCarlo
Head of Communications & IR
Rapport Therapeutics
jdicarlo@rapportrx.com
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