Alto Neuroscience Announces Closing of Upsized Initial Public Offering and Full Exercise of the Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

Alto Neuroscience, Inc. (ANRO) closed its upsized initial public offering of 9,246,000 shares of common stock, raising approximately $147.9 million. The offering price was $16.00 per share, with underwriters exercising their option to purchase 1,206,000 additional shares. Alto's common stock is listed on the NYSE under the ticker symbol ANRO. Jefferies, TD Cowen, Stifel, and William Blair were the joint book-running managers for the offering, while Baird acted as the lead manager. Registration statements were filed with the SEC and became effective on February 1, 2024.

Financial Analyst

The successful closing of Alto Neuroscience's upsized initial public offering (IPO) represents a significant capital infusion, amounting to approximately $147.9 million in gross proceeds. This capital increase is poised to bolster the company's financial position, providing the liquidity necessary to fund research and development, expand operations, or pay off existing debts. Such a substantial IPO also reflects investor confidence in Alto's business model and future prospects.

From a financial standpoint, the exercise of the full option by underwriters to purchase additional shares indicates robust demand for the stock. This often translates into positive post-IPO performance, as it suggests that the market believes the company is undervalued at the offering price. However, investors should monitor the stock's performance closely as the market adjusts to the new supply of shares and evaluates Alto's growth trajectory and execution of its business strategy.

Market Research Analyst

The entry of Alto Neuroscience into the public market, especially on the NYSE, increases its visibility and credibility among potential institutional investors and partners. The involvement of reputable financial institutions as joint book-running managers and lead manager indicates a well-received offering, likely due to a strong investment thesis presented by Alto.

It's important to consider the competitive landscape within the neuroscience and biotechnology sectors. An IPO of this scale provides Alto with the means to potentially accelerate its pipeline development, which could disrupt existing market dynamics. Stakeholders should evaluate how these funds will be allocated to drive innovation and market share capture, as well as how Alto's entry might pressure competitors to ramp up their own strategic initiatives.

Legal Expert

The legal aspect of this IPO is crucial, as the registration statements have been filed and declared effective by the SEC, ensuring compliance with federal securities laws. Prospective investors rely on the prospectus, which outlines the terms of the offering and provides detailed information about the company's operations, financials and risks. The availability of the prospectus through multiple channels ensures transparency and accessibility for investors.

It's also noteworthy that the press release explicitly states that the offering is not an invitation to buy securities in jurisdictions where the offer or sale is not permitted. This reflects a careful approach to regulatory compliance, minimizing the risk of legal challenges or sanctions that could affect investor confidence and the company's reputation.

LOS ALTOS, Calif.--(BUSINESS WIRE)-- Alto Neuroscience, Inc. (“Alto”) (NYSE: ANRO) today announced the closing of its previously announced upsized initial public offering of 9,246,000 shares of common stock, which includes the exercise in full by the underwriters of their option to purchase 1,206,000 additional shares, at a public offering price of $16.00 per share. The aggregate gross proceeds to Alto from the offering were approximately $147.9 million before deducting underwriting discounts and commissions and other offering expenses payable by Alto. All of the shares of common stock were offered by Alto. Alto’s common stock is listed on the New York Stock Exchange under the ticker symbol “ANRO.”

Jefferies, TD Cowen, Stifel and William Blair acted as joint book-running managers for the offering. Baird acted as lead manager for the offering.

Registration statements relating to these securities have been filed with the Securities and Exchange Commission (the “SEC”) and became effective on February 1, 2024. A prospectus relating to and describing the terms of the offering has been filed with the SEC and is available on the SEC’s website at www.sec.gov. The offering was made only by means of a written prospectus. A copy of the final prospectus relating to the offering may be obtained from: Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com; Cowen and Company, LLC, 599 Lexington Avenue, New York, NY 10022, by telephone at (833) 297-2926, or by e-mail at Prospectus_ECM@cowen.com; Stifel, Nicolaus & Company, Incorporated, Attention: Syndicate, One Montgomery Street, Suite 3700, San Francisco, CA 94104, by telephone at (415) 364-2720, or by e-mail at syndprospectus@stifel.com; or William Blair & Company, L.L.C., Attention: Prospectus Department, 150 North Riverside Plaza, Chicago, IL 60606, by telephone at (800) 621-0687, or by email at prospectus@williamblair.com.

This press release shall not constitute an offer to sell, or the 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 registration or qualification under the securities laws of any such state or jurisdiction.

About Alto Neuroscience

Alto Neuroscience is a clinical-stage biopharmaceutical company with a mission to redefine psychiatry by leveraging neurobiology to develop personalized and highly effective treatment options. Alto’s Precision Psychiatry Platform™ measures brain biomarkers by analyzing EEG activity, neurocognitive assessments, wearable data, and other factors to better identify which patients are more likely to respond to Alto product candidates. Alto’s clinical-stage pipeline includes novel drug candidates in depression, PTSD, schizophrenia, and other mental health conditions.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240206574269/en/

Investor Contact:

Nick Smith

corporate@altoneuroscience.com

Media Contact:

Jordann Merkert

media@altoneuroscience.com

Source: Alto Neuroscience, Inc.

FAQ

What was the size of Alto Neuroscience, Inc.'s initial public offering?

Alto Neuroscience, Inc. closed an upsized initial public offering of 9,246,000 shares of common stock.

How much money did Alto Neuroscience, Inc. raise from the IPO?

Alto raised approximately $147.9 million from the initial public offering.

What is the ticker symbol for Alto Neuroscience, Inc. on the New York Stock Exchange?

Alto's common stock is listed on the NYSE under the ticker symbol ANRO.

Who were the joint book-running managers for Alto Neuroscience, Inc.'s offering?

Jefferies, TD Cowen, Stifel, and William Blair acted as the joint book-running managers for the offering.

When did Alto Neuroscience, Inc.'s registration statements become effective with the SEC?

The registration statements became effective on February 1, 2024.