Praxis Precision Medicines to Offer 7.4 Million Shares at $16-$18 Each in IPO

By Colin Kellaher

Praxis Precision Medicines Inc. on Friday said it expects to sell 7.4 million shares at between $16 and $18 apiece in its initial public offering.

At the $17 midpoint of that range, the Cambridge, Mass., clinical-stage biopharmaceutical company said it expects net proceeds of about $113.7 million, or roughly $131.2 million if the underwriters exercise an option to buy an additional 1.11 million shares.

Praxis, which is developing therapies for central-nervous-system disorders, said the proceeds, coupled with its existing resources, will be sufficient to fund its operations for at least the next 18 months.

In a filing with the U.S. Securities and Exchange Commission, Praxis said it would have about 35.3 million shares outstanding after the IPO, assuming exercise of the overallotment option, for a valuation of about $600 million at the $17-a-share midpoint.

Entities affiliated with investment firm Blackstone Group Inc. currently own about 31.8% of Praxis, which has applied to list its shares on the Nasdaq Global Market under the symbol PRAX.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

October 09, 2020 06:56 ET (10:56 GMT)

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