Prometheus Biosciences Announces Closing of Initial Public Offering and Full Exercise of Underwriters' Option to Purchase Additional Shares

Rhea-AI Summary

Prometheus Biosciences (Nasdaq: RXDX) announced the closing of its initial public offering of 11.5 million shares at $19.00 per share, generating approximately $218.5 million in gross proceeds before expenses. This includes a full exercise of underwriters' option for an additional 1.5 million shares. The IPO aims to enhance financial flexibility for the development of novel therapeutic products for inflammatory bowel disease. The company's common stock is now traded on the Nasdaq Global Select Market.

Positive

• Generated approximately $218.5 million in gross proceeds.
• Enhanced financial flexibility for product development.

Negative

• None.

SAN DIEGO, March 16, 2021 /PRNewswire/ -- Prometheus Biosciences, Inc. (Nasdaq: RXDX), a biotechnology company pioneering a precision medicine approach for the discovery, development, and commercialization of novel therapeutic and companion diagnostic products for the treatment of inflammatory bowel disease (IBD), today announced the closing of its initial public offering of 11,500,000 shares of common stock, which includes the exercise in full by the underwriters of their option to purchase 1,500,000 additional shares, at a public offering price of $19.00 per share. All of the shares were offered by Prometheus. The aggregate gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Prometheus, were $218.5 million. Prometheus' common stock is listed on the Nasdaq Global Select Market under the ticker symbol "RXDX".

SVB Leerink, Credit Suisse, Stifel and Guggenheim Securities acted as joint bookrunning managers for the offering.

Registration statements relating to the offering have been filed with the Securities and Exchange Commission (SEC) and became effective on March 11, 2021. A prospectus relating to and describing the terms of the offering has been filed with the SEC and is available on the SEC's website at www.sec.gov. The offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from SVB Leerink LLC, Attention: Syndicate Department, One Federal Street, 37th Floor, Boston, MA 02110, or by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@svbleerink.com; or from Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, 6933 Louis Stephens Drive, Morrisville, NC 27560, or by telephone at (800) 221-1037, or by email at usa.prospectus@credit-suisse.com; or from Stifel, Nicolaus & Company, Incorporated, One Montgomery Street, Suite 3700, San Francisco, California 94104, Attn: Syndicate, or by phone at (415) 364-2720 or by email at syndprospectus@stifel.com; or from Guggenheim Securities LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, New York, NY 10017, by telephone at (212) 518-5548 or by email at GSEquityProspectusDelivery@guggenheimpartners.com.

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

About Prometheus Biosciences

Prometheus Biosciences, Inc. is a biotechnology company pioneering a precision medicine approach for the discovery, development, and commercialization of novel therapeutic and companion diagnostic products for the treatment and diagnosis of IBD. The company's precision medicine platform, Prometheus360, combines proprietary bioinformatics discovery methods with one of the world's largest gastrointestinal bioinformatics databases to identify novel therapeutic targets and develop therapeutic candidates to engage those targets. 

Prometheus is headquartered in San Diego, CA. 

 

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SOURCE Prometheus Biosciences

FAQ

What was the total amount raised by Prometheus Biosciences in its IPO?

Prometheus Biosciences raised approximately $218.5 million in its IPO.

How many shares were offered in the Prometheus Biosciences IPO?

The IPO included the offering of 11.5 million shares of common stock.

What was the public offering price for the shares of Prometheus Biosciences?

The public offering price was $19.00 per share.

When was the registration for the Prometheus Biosciences IPO effective?

The registration statements relating to the offering became effective on March 11, 2021.

What does the proceeds from the IPO aim to support?

The proceeds will enhance financial flexibility for the development of novel therapeutic products for inflammatory bowel disease.