France-based gene editing company Cellectis set the terms for its initial public offering yesterday and will issue 3.5 million shares, equating to almost $129m at its Alternext share price.
Cellectis, which is backed by investors including pharmaceutical firm Pfizer, floated on the Alternext market in Paris in 2007 and its shares were priced at about €35.00 ($36.83) at the time of its latest US filing, which would give it proceeds of $128.9m. It is expected to price the IPO next week.
The company is developing gene editing technology for use in immuno-oncology, using the power of the immune system to target and eradicate cancers. It plans to use $42m of the IPO proceeds to push four of its drug candidates through Phase 1 clinical trials, and to advance one into Phase 2 trials.
A further $17m will be put into research on cell attributes and the development of Cellectis’ manufacturing processes and cell engineering technologies, while a combined $35m will go to exploring therapeutics outside of oncology and the advancement of its agricultural biotechnology business.
Pfizer holds almost 9.5% of Cellectis but its stake is set to be diluted to 8.3% through the offering. French state-backed fund Bpifrance will remain the company’s largest institutional shareholder, though its stake will be reduced from 10.3% to 9.1%.
BofA Merrill Lynch, Jefferies and Piper Jaffray are the joint bookrunners for the IPO, while Oppenheimer and Trout Capital are also acting as underwriters.