Rapt Therapeutics IPO: What You Need To Know

The IPO calendar this week has a single biotech issue which has in its clinical pipeline, product candidates targeting oncology and inflammatory diseases.

The IPO Terms

San Francisco, California-based Rapt Therapeutics, Inc. is set to offer 5 million shares in an IPO, with the estimated price range at $14-$16, according to an amendment to the preliminary prospectus filed with the SEC.

At the midpoint of the estimated price range, the gross proceeds from the offering is likely to be $75 million.

The company expects the shares to trade on the Nasdaq under the ticker symbol RAPT.

Bank of America Merrill Lynch, Wells Fargo Securities, BMO Capital Markets and UBS are the underwriters for the offering.

The Company

Rapt is a clinical-stage immunology-based biopharma company developing oral small molecule therapies using its proprietary drug discovery and development engine, which is used for developing highly selective small molecules that help to modulate critical immune responses underlying the diseases.

The company's lead oncology pipeline asset FLX475 is in the clinical stage of development, while its lead inflammation drug candidate RPT193 is due to enter the clinic in the second half of 2019, with each of these targeting C-C motif chemokine receptor 4.

It's also pursuing a range of targets, including general control nondepressable 2 and hematopoietic progenitor kinase 1, which are in the discovery stage.

Source: S-1/A filing

The Finances

Rapt is yet to turn in any revenues. The company reported a net loss of $36.15 million for the fiscal year 2018 compared to a loss of $29.12 million in the year-ago period. The loss for the three-month period ended March 31 widened year-over-year from $8.23 million to $9.19 million.

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