Reneo Pharmaceuticals Announces Pricing of Initial Public Offering

Rhea-AI Summary

Reneo Pharmaceuticals announced its initial public offering (IPO) of 6,250,000 shares at $15.00 each, raising approximately $93.8 million. The shares will trade on Nasdaq under the symbol ‘RPHM’ starting April 9, 2021. The underwriters have an option to purchase an additional 937,500 shares within 30 days. The IPO is set to close on April 13, 2021, pending customary conditions. Reneo focuses on therapies for rare genetic mitochondrial diseases, with its lead candidate REN001 aimed at improving mitochondrial function.

Positive

• Raised approximately $93.8 million from IPO, enhancing capital for development.
• NASDAQ listing under symbol 'RPHM' expected to increase visibility and investor interest.
• Potential for growth in treating rare genetic mitochondrial diseases.

Negative

• Dilution risk due to the issuance of 6,250,000 shares; additional 937,500 shares may further dilute existing shareholders.

SAN DIEGO, April 08, 2021 (GLOBE NEWSWIRE) -- Reneo Pharmaceuticals, Inc., a clinical stage pharmaceutical company focused on the development and commercialization of therapies for patients with rare, genetic, mitochondrial diseases, today announced the pricing of its initial public offering of 6,250,000 shares of its common stock at a public offering price of $15.00 per share, for total gross proceeds of approximately $93.8 million, before deducting underwriting discounts and commissions and offering expenses. All of the shares are being offered by Reneo. The shares are expected to begin trading on the Nasdaq Global Market on April 9, 2021 under the symbol “RPHM.” In addition, Reneo has granted the underwriters a 30-day option to purchase up to an additional 937,500 shares of common stock at the public offering price less underwriting discounts and commissions. The offering is expected to close on April 13, 2021, subject to satisfaction of customary closing conditions.

Jefferies, SVB Leerink and Piper Sandler are acting as joint book-running managers for the offering.

A registration statement relating to these securities has been filed with the Securities and Exchange Commission and became effective on April 8, 2021. The offering is being made only by means of a prospectus. Copies of the final prospectus relating to the offering may be obtained, when available, 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 e-mail at prospectus_department@jefferies.com; SVB Leerink LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA, 02110, by telephone at (800) 808-7525, ext. 6105 or by e-mail at syndicate@svbleerink.com; or Piper Sandler & Co., Attention: Prospectus Department, 800 Nicollet Mall, J12S03, Minneapolis, MN 55402, by telephone at (800) 747-3924 or by e-mail at prospectus@psc.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy, 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 Reneo Pharmaceuticals

Reneo is a clinical stage pharmaceutical company focused on the development and commercialization of therapies for patients with rare genetic mitochondrial diseases, which are often associated with the inability of mitochondria to produce adenosine triphosphate (ATP). Reneo is developing REN001 to modulate genes critical to metabolism and generation of ATP, which is the primary source of energy for cellular processes. REN001 has been shown to increase transcription of genes involved in mitochondrial function and increase fatty acid oxidation, and may increase production of new mitochondria.

Contacts:

Joyce Allaire
Managing Director
LifeSci Advisors, LLC
jallaire@lifesciadvisors.com

Vinny Jindal
Chief Financial Officer
Reneo Pharmaceuticals, Inc.
investors@reneopharma.com

FAQ

What is the IPO price for Reneo Pharmaceuticals (RPHM)?

The IPO price is set at $15.00 per share.

When will Reneo Pharmaceuticals start trading on Nasdaq?

Reneo Pharmaceuticals is expected to start trading on Nasdaq on April 9, 2021.

How much capital is Reneo Pharmaceuticals raising from its IPO?

Reneo Pharmaceuticals is raising approximately $93.8 million from the IPO.

What is the purpose of Reneo Pharmaceuticals' IPO?

The IPO aims to raise funds for the development of therapies for rare genetic mitochondrial diseases.

What is the symbol used for Reneo Pharmaceuticals on the stock market?

The stock symbol for Reneo Pharmaceuticals is 'RPHM'.