Zenas BioPharma Announces Closing of Full Exercise of Underwriters’ Option to Purchase Additional Shares in Initial Public Offering

Rhea-AI Summary

Zenas BioPharma (Nasdaq: ZBIO), a clinical-stage biopharmaceutical company, announced the closing of the underwriters' full exercise of their option to purchase an additional 1,985,294 shares at $17.00 per share in its upsized initial public offering (IPO). This follows the initial offering of 13,235,294 shares, which closed on September 16, 2024. The total offering now amounts to 15,220,588 shares, generating gross proceeds of approximately $258.7 million. The shares began trading on the Nasdaq Global Select Market on September 13, 2024. Morgan Stanley, Jefferies, Citigroup, and Guggenheim Securities served as joint book-running managers. Registration statements for the shares were filed with the U.S. Securities and Exchange Commission and became effective on September 12, 2024.

Positive

• Zenas BioPharma raised approximately $258.7 million from its IPO.
• The full exercise of the underwriters' option indicates strong investor demand.
• Shares began trading on the Nasdaq Global Select Market, increasing visibility and potential liquidity.

Negative

• Share dilution due to the additional issuance of 1,985,294 shares.

Insights

Financial Analyst

Zenas BioPharma's successful IPO and full exercise of the underwriters' option signals strong investor confidence in the company's potential. The $258.7 million gross proceeds provide substantial capital for advancing their immunology-based therapies pipeline. This significant funding positions Zenas competitively in the biotech sector, potentially accelerating their R&D efforts and clinical trials.

The upsized offering and overallotment exercise suggest high demand, which could lead to positive momentum in the stock's early trading. However, investors should note that newly public biotech companies often face volatility as they progress through clinical stages. The involvement of major underwriters like Morgan Stanley and Jefferies adds credibility but doesn't guarantee long-term success.

Market Research Analyst

The successful IPO of Zenas BioPharma reflects a favorable market sentiment towards immunology-focused biotechs. The company's ability to raise $258.7 million in the current economic climate is noteworthy, indicating investor appetite for innovative healthcare solutions. This substantial funding could potentially disrupt the competitive landscape in the immunology therapeutics market.

The initial pricing at $17 per share and full exercise of the overallotment option suggest a well-executed IPO strategy. However, investors should monitor how Zenas allocates these funds and tracks against its development milestones. The company's performance in the coming quarters will be important in justifying its valuation and maintaining investor interest in a sector known for its high risk-reward profile.

WALTHAM, Mass., Sept. 19, 2024 (GLOBE NEWSWIRE) -- Zenas BioPharma, Inc. (“Zenas”), (Nasdaq: ZBIO) a clinical-stage global biopharmaceutical company committed to being a leader in the development and commercialization of transformative immunology-based therapies, today announced that the underwriters of its previously announced upsized initial public offering of 13,235,294 shares of its common stock, which closed on September 16, 2024, exercised in full their option to purchase an additional 1,985,294 shares at the initial public offering price of $17.00 per share. After giving effect to the full exercise of the underwriters’ option to purchase additional shares, which closed on September 19, 2024, Zenas sold 15,220,588 shares in its initial public offering, resulting in gross proceeds of approximately $258.7 million. All of the shares were sold by Zenas. Zenas’ shares began trading on the Nasdaq Global Select Market on September 13, 2024 under the ticker symbol “ZBIO”.

Morgan Stanley, Jefferies, Citigroup, and Guggenheim Securities acted as joint book-running managers for the offering.

Registration statements relating to the shares sold in the offering have been filed with the U.S. Securities and Exchange Commission (“SEC”) and became effective on September 12, 2024. The offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; and from 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.

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 Zenas BioPharma, Inc.

Zenas is a clinical-stage global biopharmaceutical company committed to becoming a leader in the development and commercialization of transformative immunology-based therapies for patients in need. Our core business strategy combines our experienced leadership team with a disciplined product candidate acquisition approach to identify, acquire and develop product candidates globally that we believe can provide superior clinical benefits to patients living with autoimmune diseases. Zenas’ lead product candidate, obexelimab, is a bifunctional monoclonal antibody designed to bind both CD19 and FcγRIIb, which are broadly present across B cell lineage, to inhibit the activity of cells that are implicated in many autoimmune diseases without depleting them.

Investor Contact:
Matthew Osborne
Investor Relations and Corporate Communications
Matt.osborne@zenasbio.com

Media Contact:
Argot Partners
Zenas@argotpartners.com

FAQ

What is the total amount raised by Zenas BioPharma in its IPO?

Zenas BioPharma raised approximately $258.7 million in its IPO.

When did Zenas BioPharma's shares start trading on Nasdaq?

Zenas BioPharma's shares began trading on Nasdaq on September 13, 2024.

What is the ticker symbol for Zenas BioPharma?

The ticker symbol for Zenas BioPharma is ZBIO.

Who were the joint book-running managers for Zenas BioPharma's IPO?

Morgan Stanley, Jefferies, Citigroup, and Guggenheim Securities acted as joint book-running managers.

What was the price per share in Zenas BioPharma's IPO?

The price per share in Zenas BioPharma's IPO was $17.00.