NGM Biopharmaceuticals Inc. plans to raise net proceeds of about $89.5 million in an IPO and will conduct a separate private placement with Merck & Co. Inc. in which the pharmaceutical giant will acquire a nearly 20% stake in the biotech firm.
The biotechnology company will offer 6,666,667 common shares in the IPO at $15 apiece, the midpoint of the IPO's estimated price range of $14 and $16 per share. According to NGM, existing shareholder The Column Group LLC has indicated plans to purchase about $30 million worth of common shares in the IPO.
NGM has granted underwriters an option to purchase up to an additional 1 million shares at the offering price. The company has applied to list on the Nasdaq Global Select Market under the symbol NGM.
The separate private placement with Kenilworth, N.J.-based Merck will raise an estimated $61.8 million, with 4,121,683 common shares sold at the IPO's offering price.
NGM and Merck have collaborated before. In January, Merck acquired exclusive worldwide rights to develop and commercialize liver the disease therapy NGM313 for $20 million.
Funds raised in the offerings will be used for developing a protein to treat liver conditions, as well as for NGM's working capital and general operating expenses.
Goldman Sachs & Co. LLC, Citigroup Global Markets Inc. and Cowen and Co. LLC are the underwriters for the offering.