AVROBIO Inc. plans to offer 4,412,000 common shares in its IPO at a price between $16 and $18 apiece to raise up to $91.3 million in gross proceeds.
The Cambridge, Mass.-based clinical-stage gene therapy company has applied to list its common stock on the Nasdaq Global Market under the symbol AVRO.
AVROBIO granted the underwriters an option to buy up to an additional 661,800 common shares. Existing stockholders, including certain affiliates of directors, have also indicated an interest in buying about $37.5 million of the company's shares.
The company said that all of its outstanding preferred shares will be automatically converted into 15,320,213 common shares upon closing of the offering.
AVROBIO added that a 1-for-4.132 reverse split of its common stock was undertaken June 7.
Based on the assumed initial public offering price of $17 per share, net proceeds from the offering are expected to be about $67.5 million, or about $77.9 million if the underwriters fully exercise their overallotment option.
The company intends to use the net proceeds for the clinical development of its gene therapy candidate AVR-RD-01 to treat Fabry disease; to advance the development of AVR-RD-02 for treating Gaucher disease, an inherited metabolism disorder; and to develop AVR-RD-03 and AVR-RD-04 for treating metabolic disorders Pompe disease and cystinosis, respectively.
AVROBIO also intends to use the net proceeds for external and internal manufacturing and process development activities; research and development; and the remainder for general and administrative expenses, operating expenses, working capital and other general corporate purposes.
Morgan Stanley & Co. LLC, Cowen and Co. LLC, Wells Fargo Securities LLC and Wedbush Securities Inc. are acting as underwriters for the offering.