Avalyn (Nasdaq: AVLN) closed its initial public offering on May 1, 2026, selling an aggregate 19,166,667 shares of common stock, which includes the underwriters' full exercise of a 2,500,000-share overallotment option at $18.00 per share.
The aggregate gross proceeds were $345 million before underwriting discounts, commissions and offering expenses. Avalyn's common stock is listed on the Nasdaq Global Select Market under the ticker AVLN. Joint book-running managers were Morgan Stanley, Jefferies, Evercore ISI and Guggenheim Securities.
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AI-generated analysis. Not financial advice.
Positive
Gross proceeds of $345 million from the offering
Full exercise of 2,500,000-share overallotment option
Nasdaq Global Select listing under ticker AVLN
Negative
Proceeds stated before underwriting discounts, commissions and offering expenses
All shares were offered by Avalyn, implying primary issuance (company-side dilution for pre-IPO holders)
News Market Reaction – AVLN
-2.58%
2 alerts
-2.58%News Effect
-$33MValuation Impact
$1.23BMarket Cap
1.03KVolume
On the day this news was published, AVLN declined 2.58%, reflecting a moderate negative market reaction.
Our momentum scanner triggered 2 alerts that day, indicating moderate trading interest and price volatility.
This price movement removed approximately $33M from the company's valuation, bringing the market cap to $1.23B at that time.
VolumeVolume 6,171,092 is slightly below 20-day average of 6,506,631.normal
TechnicalPrice is near the 200-day moving average at 29.49.
Market Pulse Summary
This announcement confirms completion of Avalyn’s IPO, issuing 19,166,667 shares at $18.00 per share...
Analysis
This announcement confirms completion of Avalyn’s IPO, issuing 19,166,667 shares at $18.00 per share and raising $345 million in gross proceeds. With the registration statement declared effective on April 29, 2026, the company now trades on the Nasdaq Global Select Market under “AVLN.” Investors may watch how the new capital supports clinical programs, as well as upcoming regulatory and trial milestones disclosed in future updates.
Key Terms
initial public offering, ipo, overallotment option, registration statement, +4 more
8 terms
initial public offeringfinancial
"announced the closing of its initial public offering (IPO) of an aggregate 19,166,667"
An initial public offering (IPO) is when a private company first sells its shares to the public and becomes a stock-listed company. It matters because it allows the company to raise money from a wide range of investors, helping it grow, while giving early shareholders a way to sell some of their ownership.
ipofinancial
"closing of its initial public offering (IPO) of an aggregate 19,166,667 shares"
An initial public offering (IPO) is the process by which a private company sells its shares to the public for the first time, making its ownership available on the stock market. This allows the company to raise money from a wide range of investors to fund growth or other goals. For investors, an IPO offers a chance to buy into a company early in its public journey, potentially benefiting if the company grows in value.
overallotment optionfinancial
"including the full exercise by the underwriters of their overallotment option to purchase"
An overallotment option (often called a "greenshoe") is a pre-arranged allowance for underwriters to sell or buy up to a specified extra percentage of a company’s shares during an offering to meet unexpected demand or support the share price. Think of it as a short-term buffer: it helps reduce wild swings right after shares start trading but can slightly increase the total shares outstanding if the option is exercised, which matters to investors because it affects supply, price stability, and potential dilution.
registration statementregulatory
"A registration statement relating to the offering has been filed with the Securities"
A registration statement is a formal document that companies file with a government agency to offer new shares of stock to the public. It provides essential information about the company's finances, operations, and risks, helping investors make informed decisions. Think of it as a detailed product description that ensures transparency and trust before buying into a company.
prospectusregulatory
"The offering was made only by means of a prospectus. Copies of the final prospectus"
A prospectus is a detailed document that explains a company's plans for offering new shares or investments to the public. It’s important because it provides potential investors with key information about the company’s business, risks, and how they might make money, helping them decide whether to invest. Think of it as a guidebook for understanding what you're buying into.
underwritersfinancial
"including the full exercise by the underwriters of their overallotment option"
Underwriters are financial professionals or institutions that help companies raise money by selling new securities, such as stocks or bonds, to investors. They assess the risk and determine the price at which these securities should be sold, acting like a bridge between the company and the investors. Their role helps ensure that the company raises the needed funds while providing investors with options that reflect the level of risk involved.
joint book-running managersfinancial
"Morgan Stanley, Jefferies, Evercore ISI and Guggenheim Securities acted as joint book-running managers"
Joint book-running managers are the lead banks or financial firms responsible for organizing and overseeing the sale of a large financial offering, such as a company’s stock or bonds. They coordinate efforts to set the price, attract investors, and ensure the offering is successful. Their role is important to investors because they help ensure the offering is well-managed, properly priced, and accessible to a wide range of buyers.
nasdaq global select markettechnical
"Avalyn’s common stock is listed on the Nasdaq Global Select Market under the ticker symbol"
A Nasdaq Global Select Market listing is the highest tier of stocks on the Nasdaq exchange, reserved for companies that meet the strictest financial, reporting and governance standards. For investors, it acts like a premium quality label—signaling larger, more transparent and better-governed companies that tend to offer greater liquidity and lower perceived risk compared with lower-tier listings, making it easier to buy, sell and evaluate shares.
AI-generated analysis. Not financial advice.
BOSTON, May 01, 2026 (GLOBE NEWSWIRE) -- Avalyn Pharma Inc. (Nasdaq: AVLN), a clinical-stage biopharmaceutical company pioneering inhaled therapies to transform the treatment paradigm of serious, rare respiratory diseases, today announced the closing of its initial public offering (IPO) of an aggregate 19,166,667 shares of its common stock, including the full exercise by the underwriters of their overallotment option to purchase 2,500,000 additional shares, at IPO price of $18.00 per share. All of the shares of common stock were offered by Avalyn.
The aggregate gross proceeds from the offering of the initial shares and the additional shares described above, before deducting underwriting discounts and commissions and other offering expenses, were $345 million. Avalyn’s common stock is listed on the Nasdaq Global Select Market under the ticker symbol “AVLN.”
Morgan Stanley, Jefferies, Evercore ISI and Guggenheim Securities acted as joint book-running managers for the offering.
A registration statement relating to the offering has been filed with the Securities and Exchange Commission and was declared effective on April 29, 2026. The offering was made only by means of a prospectus. Copies of the final prospectus may be obtained from:
Morgan Stanley & Co. LLC, Attn: Prospectus Department, 180 Varick Street, New York, NY 10014, telephone: 1-866-718-1649, email: prospectus@morganstanley.com; Jefferies LLC, Attn: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, New York 10022, telephone: (877) 821-7388, email: Prospectus_Department@Jefferies.com; Evercore Group L.L.C., Attn: Equity Capital Markets, 55 East 52nd Street, 35th Floor, New York, New York 10055, telephone: (888) 474-0200, email: ecm.prospectus@evercore.com; or Guggenheim Securities, LLC, Attn: Equity Syndicate Department, 330 Madison Ave., New York, New York 10017, telephone: (212) 518-9544, email: GSEquityProspectusDelivery@guggenheimpartners.com.
This press release does 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.
Investor Contact: Cassie Saitow, Avalyn Pharma Inc. Sr. Director, IR and Corporate Communications ir@avalynpharma.com
FAQ
What did Avalyn (AVLN) announce on May 1, 2026 about its IPO?
Avalyn announced the closing of its IPO, selling 19,166,667 shares including the overallotment. According to Avalyn, the offering included a fully exercised 2,500,000-share overallotment option at $18.00 per share and resulted in aggregate gross proceeds of $345 million.
How many shares did Avalyn (AVLN) sell and at what IPO price?
Avalyn sold a total of 19,166,667 shares at $18.00 per share. According to Avalyn, that aggregate includes the underwriters' full exercise of a 2,500,000-share overallotment option.
What were the total gross proceeds from Avalyn's (AVLN) IPO?
The offering generated aggregate gross proceeds of $345 million before fees and expenses. According to Avalyn, that figure is before deducting underwriting discounts, commissions and other offering expenses.
What does full exercise of the underwriters' option mean for Avalyn (AVLN)?
Full exercise means underwriters purchased the additional 2,500,000 shares authorized in the option. According to Avalyn, this increased the total shares sold and raised the aggregate gross proceeds to $345 million.
Where is Avalyn (AVLN) listed and who managed the IPO?
Avalyn is listed on the Nasdaq Global Select Market under ticker AVLN. According to Avalyn, joint book-running managers were Morgan Stanley, Jefferies, Evercore ISI and Guggenheim Securities.
