Tokai Pharmaceuticals, a US-based developer of treatments for prostate cancer and other hormonally-driven diseases, raised $97.2m in an initial public offering on Wednesday.
Tokai issued 6.48 million shares priced at $15.00 each. Novartis BioVentures, a corporate venturing subsidiary of pharmaceutical company Novartis, is Tokai’s second largest shareholder, having held a 28.1% stake that was diluted to 34.6% in the offering.
Apple Tree Partners is the company’s largest shareholder, retaining a 34.6% share, while Satter Investment Management holds a 7.4% stake. The company had raised approximately $102m in equity funding prior to the IPO.
Tokai will invest $45m of the proceeds in a pivotal Phase 3 clinical trial of galeterone, its drug candidate for the treatment of prostate cancer. The rest will support an ongoing trial for an additional trial and the research of compounds for future drugs.
BMO Capital Markets, Stifel and William Blair are the joint book-running managers for the IPO, while Janney Montgomery Scott is serving as co-manager. They have the 30-day option to buy a further 972,000 shares, which would increase the size of the IPO to $111.8m.