Switzerland-based gene editing technology developer Crispr Therapeutics has set the range for its initial public offering between $15 and $17 a share and could raise up to $79.9m when it floats.
Crispr, which is backed by investors including pharmaceutical group Bayer, intends to issue 4.7 million shares on Nasdaq and, should it float at the top of its range, will do so at a fully diluted market cap of approximately $710m.
Crispr is developing treatments for a range of series diseases which will utilise Crispr/Cas9 gene editing technology. It will invest $20m of the proceeds to advance its haemoglobinopathy programs, $40m to develop additional programs and $10m to strengthen its gene editing platform.
The company has disclosed about $200m in venture funding, including $60m in a series A round led by SR One, a subsidiary of pharmaceutical company GlaxoSmithKline, and backed by Versant Ventures, New Enterprise Associates (NEA) and Abingworth,
Crispr closed its series B round at almost $140m in June 2016. The round was co-led by drug producers Vertex Pharmaceuticals and Bayer, which invested $35m through its Bayer Global Investments unit as part of a drug development deal.
Other series B investors included pharmaceutical firm Celgene, Versant, NEA, Abingworth, Franklin Templeton Investments, New Leaf Venture Partners, funds advised by Clough Capital Partners and Wellington Capital Management.
Bayer Global Investments will invest $35m in Crispr through a private placement once the IPO has been completed, which will increase its 8% stake to 12.1%. Celgene’s stake will be diluted from 12.4% to 10.2%, SR One’s from 9.7% to 7.9% and Vertex’s from 7.6% to 6.2%.
Versant will remain Crispr’s largest shareholder, though its stake will be diluted from 20.7% to 17%. NEA will own a 7.9% share of the company post-IPO and Abingworth 6.4%.
Citigroup Global Markets, Piper Jaffray and Barclays Capital have been appointed joint book-running managers of the offering. Guggenheim Securities is also an underwriter.