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Alumis Announces Pricing of Initial Public Offering

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Alumis, a clinical-stage biopharmaceutical company, has priced its initial public offering (IPO) at $16.00 per share for 13,125,000 shares. The company has also provided a 30-day option for underwriters to purchase an additional 1,968,750 shares. Trading on Nasdaq is set to begin on June 28, 2024, under the symbol 'ALMS', with the offering expected to close on July 1, 2024. Concurrently, Alumis will sell 2,500,000 shares in a private placement to AyurMaya Capital Management Fund at the same price.

The total expected gross proceeds from both the IPO and the private placement are projected to be $250 million, excluding underwriters' exercise options. The private placement is subject to a 180-day lock-up agreement and will close by July 22, 2024, contingent on the IPO's closure. Leading the IPO are Morgan Stanley, Leerink Partners, Cantor, and Guggenheim Securities.

Positive
  • Alumis to raise $250 million in total from IPO and private placement.
  • IPO priced at $16.00 per share, indicating market confidence.
  • Concurrent private placement boosts additional funding and investor commitment.
Negative
  • Potential dilution of existing shares due to the issuance of 15,625,000 new shares.
  • Private placement shares are not registered and subject to a 180-day lock-up, limiting liquidity.

The pricing and details of Alumis Inc.'s initial public offering (IPO) are fundamental for potential investors. The company has priced its shares at $16.00 per share, with an offering of 13,125,000 shares, translating into gross proceeds of $210 million. This valuation indicates a robust market confidence in Alumis' potential, especially as a clinical-stage biopharmaceutical company.

It is important to note the over-allotment option granted to underwriters, which could introduce an additional $31.5 million if exercised. This option often signifies strong demand anticipated by the underwriters. The concurrent private placement with AyurMaya Capital Management Fund adds another $40 million, bringing the total expected gross proceeds to $250 million. This private placement, being subject to resale registration rights and a 180-day lock-up agreement, underscores the investor's long-term confidence in the company's prospects.

As a retail investor, understanding the significance of these numbers helps gauge the financial health and market reception of Alumis' IPO. Additionally, the involvement of reputed underwriters like Morgan Stanley and Guggenheim Securities suggests a positive endorsement and can be seen as a vote of confidence in the company's fundamentals.

From a market research perspective, Alumis' IPO is noteworthy given its focus on oral therapies for immune-mediated diseases. The biopharmaceutical sector is highly competitive and innovation-driven, with significant market opportunities for effective treatments in this space. The IPO funds are likely to be allocated towards advancing clinical trials and potentially expediting the time-to-market for their therapies, which could be a critical growth driver.

Investors should be cautious yet optimistic, as the company's success depends heavily on the progress and results of its clinical trials. The projected gross proceeds of $250 million provide a considerable financial buffer to support these endeavors. Furthermore, the lock-up agreement for the private placement indicates a strategic move to stabilize the stock price post-IPO, which can protect against immediate volatility.

Understanding these dynamics is important for retail investors, as the biopharmaceutical industry is notorious for its high-risk, high-reward potential. Strategic use of the IPO proceeds can significantly influence the company's market positioning and long-term growth trajectory.

SOUTH SAN FRANCISCO, Calif., June 27, 2024 (GLOBE NEWSWIRE) -- Alumis Inc. (“Alumis” or the “Company”) (Nasdaq: ALMS), a clinical-stage biopharmaceutical company developing oral therapies using a precision approach to optimize clinical outcomes and significantly improve the lives of patients with immune-mediated diseases, today announced the pricing of its initial public offering of 13,125,000 shares of common stock at an initial public offering price of $16.00 per share. All shares of common stock are being offered by Alumis. In addition, Alumis has granted the underwriters a 30-day over-allotment option to purchase up to an additional 1,968,750 shares of common stock at the initial public offering price, less underwriting discounts and commissions.

The shares are expected to begin trading on Nasdaq on June 28, 2024 under the symbol “ALMS.” The offering is expected to close on July 1, 2024, subject to the satisfaction or waiver of customary closing conditions.

Morgan Stanley, Leerink Partners, Cantor and Guggenheim Securities are acting as joint book-running managers for the offering.

In addition to the shares being sold in the initial public offering, Alumis also announced today that it has agreed to sell an additional 2,500,000 shares of its common stock in a concurrent private placement at $16.00 per share to one of its existing investors, AyurMaya Capital Management Fund, LP. The sale of these shares of common stock will not be registered under the Securities Act of 1933, as amended, and as such, the shares may not be offered or sold absent registration or an applicable exemption from registration. The concurrent private placement shares are subject to existing resale registration rights and will be subject to a 180-day lock-up agreement. The concurrent private placement is expected to close after the closing of the initial public offering on or before July 22, 2024. The closing of the concurrent private placement is conditioned on the closing of the initial public offering.

The gross proceeds to Alumis from the initial public offering and the concurrent private placement, before deducting underwriting discounts and commissions and offering and private placement expenses payable by Alumis, are expected to be $250.0 million, excluding any exercise of the underwriters’ option to purchase additional shares of common stock.

A registration statement relating to the securities being offered and sold in this offering has been filed with the U.S. Securities and Exchange Commission (“SEC”) and became effective on June 27, 2024. Copies of the registration statement can be accessed through the SEC’s website at www.sec.gov. This offering is being made only by means of a prospectus forming part of the registration statements relating to these securities. When available, a copy of the final prospectus relating to this offering may be obtained from: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by telephone at (866) 718-1649, or by email at prospectus@morganstanley.com; Leerink Partners LLC, Attention: Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525, ext. 6105, or by email at syndicate@leerink.com; Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, NY 10022, or by email at prospectus@cantor.com; or Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com.

This press release shall not constitute an offer to sell, or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or jurisdiction.

About Alumis

Alumis is a clinical-stage biopharmaceutical company developing oral therapies using a precision approach to optimize clinical outcomes and significantly improve the lives of patients with immune-mediated diseases. Leveraging its proprietary precision data analytics platform, Alumis is building a pipeline of molecules with the potential to address a broad range of immune-mediated diseases as monotherapy or combination therapies. Alumis’ most advanced product candidate, ESK-001, is an oral, highly selective, small molecule, allosteric inhibitor of TYK2 that is currently being evaluated for the treatment of patients with moderate-to-severe plaque psoriasis and systemic lupus erythematosus. Alumis is also developing A-005, a CNS-penetrant, allosteric TYK2 inhibitor for the treatment of neuroinflammatory and neurodegenerative diseases. Beyond TYK2, Alumis’ proprietary precision data analytics platform and drug discovery expertise have led to the identification of additional preclinical programs that exemplify its precision approach. Incubated by Foresite Labs and led by a team of industry veterans experienced in small-molecule compound drug development for immune-mediated diseases, the Company is pioneering a precision approach to drug development to potentially produce the next generation of treatments to address immune dysfunction.

Forward-Looking Statements

This press release contains forward-looking statements, including statements made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These statements may be identified by words such as "aims," "anticipates," "believes," "could," "estimates," "expects," "forecasts," "goal," "intends," "may," "plans," "possible," "potential," "seeks," "will," and variations of these words or similar expressions that are intended to identify forward-looking statements. Any such statements in this press release that are not statements of historical fact may be deemed to be forward-looking statements. These forward-looking statements include, without limitation, statements regarding completion, timing and anticipated size of the initial public offering and the concurrent private placement and the expected commencement of trading on Nasdaq.

Any forward-looking statements in this press release are based on Alumis’ current expectations, estimates and projections only as of the date of this release and are subject to a number of risks and uncertainties that could cause actual results to differ materially and adversely from those set forth in or implied by such forward-looking statements. These risks and uncertainties include, but are not limited to, completion of the proposed initial public offering on the anticipated terms, or at all, market conditions and the satisfaction of customary closing conditions related to the initial public offering and the concurrent private placement. These and other risks concerning Alumis’ programs and operations are described in additional detail in its registration statement on Form S-1, which is on file with the SEC. Alumis explicitly disclaims any obligation to update any forward-looking statements except to the extent required by law.


FAQ

When is Alumis' IPO scheduled to begin trading?

Alumis' IPO is scheduled to begin trading on Nasdaq on June 28, 2024, under the symbol 'ALMS'.

What is the price per share for Alumis' IPO?

The initial public offering price for Alumis' IPO is set at $16.00 per share.

How many shares are being offered in Alumis' IPO?

Alumis is offering 13,125,000 shares of common stock in its IPO.

What is the purpose of Alumis' private placement?

The private placement aims to raise additional funds by selling 2,500,000 shares to AyurMaya Capital Management Fund at $16.00 per share.

What are the total expected gross proceeds from Alumis' IPO and private placement?

The total expected gross proceeds from Alumis' IPO and private placement are projected to be $250 million.

Alumis Inc.

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