Evelo Biosciences Inc. closed its IPO of 5,312,500 common shares at $16 apiece to raise $85 million in gross proceeds.

The Cambridge, Mass.-based company has granted the underwriters an overallotment option to buy up to an additional 796,875 shares.

Evelo's common stock began trading on the Nasdaq Global Select Market on May 9 under the ticker symbol EVLO.

Morgan Stanley, Cowen and BMO Capital Markets acted as book-running managers for the offering. JMP Securities acted as lead manager for the offering.

Evelo develops monoclonal microbials to treat inflammatory diseases and cancer by acting on the gut-body network.