Aldeyra Therapeutics, a Johnson & Johnson-backed biotechnology company based in the USA, has raised the size of its initial public offering from $20m to an estimated $22m.
Aldeyra will issue 2 million shares and has set the range for the IPO at between $10.00 and $12.00. An additional 300,000 shares could be issued if underwriter Aegis Capital takes up the 30-day option to purchase them, which would increase the maximum proceeds to $27.6m. Aldeyra initially filed for a $20m IPO in January.
The company has raised $15.1m in funding from three venture rounds since it was formed in 2004, all of which featured Johnson & Johnson Development Corporation, the corporate venturing unit of healthcare conglomerate Johnson & Johnson, and venture capital firm Domain Associates.
JJDC owns a 44.5% stake in Aldeyra, which will be reduced to 29.7% once the offering is complete, while Domain Associates holds a 50.1% share that will decrease to 33.7% after the IPO. Neither company will be divesting shares in the IPO.
The company is developing products to treat diseases thought to be related to a naturally-occurring toxic chemical species called free aldehydes. It will invest $10m of the proceeds in its currently planned clinical trials for its lead product, NS2, and the development of other molecules that could relate to its aldehyde trapping platform, with the rest to go to working capital.