Metagenomi could potentially raise over $100 million if the underwriters exercise their option to purchase additional shares in full, assuming an initial public offering price of $16 per share.
Pictured: Nasdaq sign on building in New York City/iStock, hapabapa
As the initial public offering market continues to gather steam in early 2024, California-based Metagenomi on Monday revealed its plans to raise $86.9 million, according to the company’s SEC filing.
Metagenomi is looking to sell over six million shares of its stock between $15 and $17 per share on the Nasdaq Exchange with the ticker symbol MGX. The biotech could potentially raise $100.9 million if the underwriters exercise their option to purchase additional shares in full, assuming an IPO price of $16 per share.
According to its SEC filing, Metagenomi plans to use the cash it has on hand—around $292.9 million—and the funds raised from the IPO towards several research initiatives, which will provide the company with a cash runway until 2027. The biotech will use $125 million for research and development efforts as well as pre-clinical and proof-of-concept studies for medicines in its pipeline. Another $85 million will be for IND-enabling studies and two IND filings.
Around $75 million will fund the advancement of Metagenomi’s gene editing platform and early-stage research efforts. Another $50 million will go to bolstering manufacturing capabilities to support early-stage efforts. Any funds left over will be used for general corporate purposes.
“The amounts and timing of our actual expenditures may vary significantly depending on numerous factors, including the progress of our research and development, the status of and results from pre-clinical studies or clinical trials we may commence in the future, as well as any collaborations that we may enter into with third parties for our product candidates or strategic opportunities that become available to us, and any unforeseen cash needs,” the SEC filing said.
Metagenomi’s last significant injection of funds came in early 2023 when it received a Series B extension, bringing the amount raised to $275 million with the effort led by Moderna and Bayer. Many of the company’s candidates are in the discovery or pre-clinical stages of development, with a CAR T candidate that has advanced into Phase I. Metagenomi has also forged partnerships with other major pharma companies including Ionis.
Metagenomi’s IPO plans come amid a wave of efforts to go public from companies such as Alto Neuroscience, Fractyl Health, ArriVent, and Kyverna.
Tyler Patchen is a staff writer at BioSpace. You can reach him at tyler.patchen@biospace.com. Follow him on LinkedIn.
