Zenas BioPharma Announces Pricing of Upsized Initial Public Offering

Rhea-AI Summary

Zenas BioPharma (Nasdaq: ZBIO) has announced the pricing of its upsized initial public offering (IPO) of 13,235,294 shares at $17.00 per share. The company expects to raise approximately $225.0 million in gross proceeds. Trading on the Nasdaq Global Select Market is set to begin on September 13, 2024, with the offering closing on September 16, 2024. Zenas has granted underwriters a 30-day option to purchase up to an additional 1,985,294 shares at the IPO price. Morgan Stanley, Jefferies, Citigroup, and Guggenheim Securities are acting as joint book-running managers for the offering.

Positive

• Successful pricing of upsized IPO, indicating strong investor interest
• Expected gross proceeds of approximately $225.0 million
• Listing on the Nasdaq Global Select Market, providing increased visibility and liquidity
• Additional 30-day option for underwriters to purchase more shares, potentially increasing capital raised

Negative

• Potential dilution of existing shareholders' ownership due to the issuance of new shares
• Market risks associated with newly public companies
• Increased regulatory scrutiny and reporting requirements as a public company

Insights

Financial Analyst

Zenas BioPharma's upsized IPO pricing at $17.00 per share is a strong market debut, potentially raising $225.0 million in gross proceeds. This substantial capital injection will likely fuel the company's R&D pipeline and accelerate its growth in the competitive immunology therapeutics space. The overallotment option for an additional 15% of shares indicates robust demand and could bring total proceeds to $258.8 million if exercised. Trading under 'ZBIO' on Nasdaq's Global Select Market adds credibility and visibility, potentially attracting institutional investors. However, investors should note that as a clinical-stage company, Zenas may not generate significant revenue in the near term, making it a higher-risk investment.

Biotech Industry Expert

Zenas BioPharma's focus on immunology-based therapies positions it in a high-growth sector with significant unmet medical needs. The substantial IPO proceeds will likely accelerate the development of its clinical pipeline, potentially leading to breakthrough treatments in autoimmune and inflammatory disorders. However, the path from clinical trials to FDA approval is long and uncertain. Investors should closely monitor the progress of Zenas' lead candidates and any upcoming data readouts. The involvement of top-tier underwriters like Morgan Stanley and Jefferies suggests confidence in Zenas' potential, but it's important to remember that many biotech startups fail to bring products to market despite promising early results.

Market Research Analyst

The timing of Zenas' IPO is noteworthy, coming amidst a challenging market for biotech offerings. The successful pricing above the typical $15 range for biotech IPOs and the upsized offering suggest strong investor appetite for Zenas' value proposition. This could indicate a potential thawing of the IPO market for life sciences companies. The company's ability to secure a listing on the Nasdaq Global Select Market, which has the highest initial listing standards of any exchange, is a testament to its financial strength and market potential. However, investors should be cautious as post-IPO performance can be volatile, especially in the biotech sector where clinical trial results can dramatically impact stock prices.

WALTHAM, Mass., Sept. 12, 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 the pricing of its upsized initial public offering of 13,235,294 shares of its common stock at an initial public offering price of $17.00 per share. All of the shares are being offered by Zenas. The gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses, are expected to be approximately $225.0 million. Zenas’ common stock is expected to begin trading on the Nasdaq Global Select Market on September 13, 2024 under the ticker symbol “ZBIO”. The offering is expected to close on September 16, 2024, subject to the satisfaction of customary closing conditions. In addition, Zenas has granted the underwriters a 30-day option to purchase up to an additional 1,985,294 shares of common stock at the initial public offering price, less underwriting discounts and commissions.

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

Registration statements relating to the shares being 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 is being made only by means of a prospectus. Copies of the final prospectus, when available, 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.

Forward-Looking Statements

This press release contains forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, including statements about the completion, timing and size of the initial public offering and the commencement of trading on the Nasdaq Global Select Market. Each forward-looking statement is subject to the inherent uncertainties in predicting future results and conditions and no assurance can be given that the initial public offering discussed above will be completed on the terms described or at all. Completion of the proposed initial public offering and the terms thereof are subject to numerous factors, many of which are beyond the control of Zenas, including, without limitation, market conditions, failure of customary closing conditions and the factors discussed in the “Risk Factors” section of the prospectus that forms a part of the registration statement, in the form last filed with the SEC. These forward-looking statements speak only as of the date of this press release and Zenas undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

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

Media Contact:
Argot Partners
Zenas@argotpartners.com

FAQ

What is the IPO price for Zenas BioPharma (ZBIO) shares?

Zenas BioPharma (ZBIO) has priced its initial public offering at $17.00 per share.

How many shares is Zenas BioPharma (ZBIO) offering in its IPO?

Zenas BioPharma (ZBIO) is offering 13,235,294 shares in its initial public offering.

When will Zenas BioPharma (ZBIO) start trading on the Nasdaq?

Zenas BioPharma (ZBIO) is expected to begin trading on the Nasdaq Global Select Market on September 13, 2024.

How much money does Zenas BioPharma (ZBIO) expect to raise from its IPO?

Zenas BioPharma (ZBIO) expects to raise approximately $225.0 million in gross proceeds from its initial public offering.