Genetic medicines company, Metagenomi Technologies, backed by Bayer Healthcare and Moderna, has set its sights on an initial public offering (IPO) in New York, aiming for a valuation of up to $638 million.
The California-based startup intends to offer 6.25 million shares, priced in the range of $15 to $17 per share. If the IPO achieves the upper end of this range, it could generate $106.25 million in proceeds.
Metagenomi is at the forefront of healthcare companies seeking listings and is focused on developing therapies for genetic disorders, such as hemophilia A.
It currently relies on revenue generated from three collaboration agreements, including a partnership with Moderna, rather than product sales, and has yet to turn a profit.
The IPO landscape has evolved over the past two years, with investors leaning toward profitable companies amid tightening monetary policies by the Federal Reserve.
In 2024, the IPO market’s resurgence has been mixed. While KKR-backed BrightSpring Health Services went public, its shares are trading below the IPO price. In contrast, CG Oncology’s stock nearly doubled following its IPO.
Metagenomi is positioning itself for a Nasdaq listing under the ticker symbol “MGX,” with J.P. Morgan, Jefferies, and TD Cowen acting as underwriters for the IPO.
The company recently secured $275 million in funding through a private funding round in the previous year, bolstering its financial position.
Metagenomi’s IPO is part of a broader trend in the healthcare sector, where innovative companies are seeking public offerings to fund research and development efforts.
With its strong backing from Bayer Healthcare and Moderna, Metagenomi aims to make significant strides in genetic medicine and tackle genetic diseases like hemophilia A.
Investors will be closely watching its IPO as it strives to reach its valuation target in the dynamic landscape of the healthcare industry.