Rapport Therapeutics Announces Pricing of Initial Public Offering

Rhea-AI Summary

Rapport Therapeutics, a clinical-stage biotech company, announced the pricing of its IPO at $17.00 per share for 8 million shares. Trading on the Nasdaq under the symbol 'RAPP' begins June 7, 2024, with the offering expected to close on June 10, 2024. Additionally, the company offers a 30-day option for underwriters to purchase up to 1.2 million more shares. Concurrently, Rapport will sell 1,058,824 shares in a private placement at the IPO price. Combined, these transactions aim to raise approximately $154 million before expenses, contingent on customary closing conditions. Joint book-running managers include Goldman Sachs, Jefferies, TD Cowen, and Stifel.

Positive

• IPO priced at $17.00 per share.
• Total of 8 million shares offered.
• Trading starts on Nasdaq under 'RAPP' on June 7, 2024.
• Potential for an additional 1.2 million shares through underwriters' option.
• Concurrent private placement of 1,058,824 shares.
• Expected gross proceeds of approximately $154 million.

Negative

• High dependency on closing conditions for both IPO and private placement.
• Potential share dilution from underwriters' option to purchase additional shares.
• Significant expenses related to underwriting discounts, commissions, and placement agent fees.

Insights

Financial Analyst

The pricing of Rapport Therapeutics' initial public offering (IPO) at $17.00 per share reveals the company's valuation and potential investor interest. Given the offering of 8,000,000 shares, the expected gross proceeds of approximately $136 million from the IPO (excluding the underwriters' option to purchase additional shares) underscore strong initial demand. Additionally, the concurrent private placement to existing stockholders to raise another $18 million further supports confidence in the company's future. However, investors should be aware of the customary closing conditions which, if unmet, could delay or derail the IPO and private placement. Overall, this move positions Rapport to advance its pipeline of small molecule medicines, especially in the central nervous system (CNS) disorders market. It's also noteworthy that the involvement of major investment banks like Goldman Sachs & Co. LLC, Jefferies, TD Cowen and Stifel as joint book-running managers adds credibility to the offering. Retail investors should monitor the initial trading on Nasdaq under the ticker symbol RAPP to gauge market reception and price volatility in the short term. In the long term, the company's ability to deliver on its clinical milestones will be pivotal in sustaining investor confidence.

Market Research Analyst

Rapport Therapeutics’ IPO comes at a time when the biotechnology sector is seeing renewed interest, especially for companies focusing on CNS disorders – a field with significant unmet medical needs. The participation of established underwriters suggests that Rapport has passed rigorous scrutiny, which may reassure retail investors about the quality of the company's fundamentals. The grant of a 30-day option to purchase an additional 1,200,000 shares also indicates potential for further capital if market conditions are favorable. This strategic move can be beneficial in providing extra liquidity and funding for continued R&D without immediate dilution. Nevertheless, the market’s reception of Rapport's stock post-IPO will be crucial. Investors ought to look at other recent biotech IPOs for comparison on stock performance post-listing. Understanding industry terms like ‘gross proceeds’ and ‘concurrent private placement’ is important; these refer to the total funds raised before expenses and a simultaneous sale of shares to select investors, respectively.

BOSTON and SAN DIEGO, June 06, 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 pricing of its initial public offering of 8,000,000 shares of its common stock at a public offering price of $17.00 per share. Rapport’s shares are expected to begin trading on the Nasdaq Global Market on June 7, 2024 under the ticker symbol “RAPP.” The offering is expected to close on June 10, 2024, subject to the satisfaction of customary closing conditions. In addition, Rapport has granted the underwriters a 30-day option to purchase an additional 1,200,000 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 Rapport.

Goldman Sachs & Co. LLC, Jefferies, TD Cowen and Stifel are acting as joint book-running managers for the offering.

In addition to the shares being sold in the initial public offering, Rapport has agreed to sell 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 will not be registered under the Securities Act of 1933, as amended. The concurrent private placement is also expected to close on June 10, 2024, subject to the satisfaction of customary closing conditions. The closing of Rapport’s initial public offering is not conditioned upon the closing of the concurrent private placement, but the closing of the concurrent private placement is conditioned upon the closing of the initial public offering.

The gross proceeds to Rapport from the initial public offering and the concurrent private placement, before deducting underwriting discounts and commissions, placement agent fees and offering and private placement expenses payable by Rapport, are expected to be approximately $154 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 June 6, 2024. The offering is being made only by means of a prospectus. A copy of the final prospectus, when available, 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

FAQ

What is the IPO price for Rapport Therapeutics' shares?

The IPO price for Rapport Therapeutics' shares is $17.00 per share.

When will Rapport Therapeutics begin trading on Nasdaq?

Rapport Therapeutics will begin trading on Nasdaq on June 7, 2024, under the ticker symbol 'RAPP'.

What is the total number of shares offered in Rapport Therapeutics' IPO?

Rapport Therapeutics is offering 8 million shares in its IPO.

How much capital is Rapport Therapeutics aiming to raise through its IPO and private placement?

Rapport Therapeutics aims to raise approximately $154 million through its IPO and concurrent private placement.

Who are the joint book-running managers for Rapport Therapeutics' IPO?

The joint book-running managers for Rapport Therapeutics' IPO are Goldman Sachs, Jefferies, TD Cowen, and Stifel.

Is there an option for underwriters to purchase additional shares in Rapport Therapeutics' IPO?

Yes, underwriters have a 30-day option to purchase an additional 1.2 million shares at the IPO price.