Prometheus Biosciences Announces Upsized Pricing of Initial Public Offering

Rhea-AI Summary

Prometheus Biosciences, Inc. (Nasdaq: RXDX) has successfully priced its upsized initial public offering (IPO) of 10 million shares at $19.00 each, aiming to raise approximately $190 million before expenses. The shares will trade on the Nasdaq Global Select Market starting March 12, 2021, with the offering expected to close on March 16, 2021. Additionally, underwriters have a 30-day option to purchase 1.5 million extra shares. The company specializes in precision medicine for inflammatory bowel disease (IBD).

Positive

• The IPO aims to raise $190 million, providing significant funding for future growth.
• Prometheus is a leader in precision medicine specifically for IBD, with a strong bioinformatics platform.

Negative

• The offering could result in shareholder dilution if the underwriters exercise their option for additional shares.

SAN DIEGO, March 11, 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 pricing of its upsized initial public offering of 10,000,000 shares of common stock at a public offering price of $19.00 per share. All of the shares are being offered by Prometheus. The shares are expected to begin trading on the Nasdaq Global Select Market on March 12, 2021 under the ticker symbol "RXDX". The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses payable by Prometheus, are expected to be $190 million. The offering is expected to close on March 16, 2021, subject to satisfaction of customary closing conditions. In addition, Prometheus has granted the underwriters a 30-day option to purchase up to an additional 1,500,000 shares of common stock at the initial public offering price, less underwriting discounts and commissions.

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

Registration statements relating to the offering have been filed with the Securities and Exchange Commission and became effective on March 11, 2021. The offering will be made only by means of a prospectus. When available, copies of the 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 is the price per share for the RXDX initial public offering?

The price per share for the RXDX initial public offering is $19.00.

When will RXDX shares begin trading?

RXDX shares are expected to begin trading on March 12, 2021.

How much is Prometheus Biosciences expecting to raise from the IPO?

Prometheus Biosciences is expecting to raise approximately $190 million from the IPO.

What is the ticker symbol for Prometheus Biosciences?

The ticker symbol for Prometheus Biosciences is RXDX.

What are the potential risks associated with the RXDX offering?

The offering could lead to shareholder dilution if the underwriters purchase the additional 1.5 million shares.