Avalyn Announces Pricing of Upsized Initial Public Offering

Rhea-AI Summary

Avalyn (Nasdaq: AVLN) priced an upsized initial public offering of 16,666,667 common shares at $18.00 per share, expected to raise approximately $300 million in gross proceeds before underwriting discounts, commissions and expenses. The underwriters have a 30-day option to purchase an additional 2,500,000 shares.

Shares are expected to begin trading on the Nasdaq Global Select Market on April 30, 2026, with the offering expected to close on May 1, 2026, subject to customary conditions.

Positive

• Gross proceeds of approximately $300 million
• Upsized IPO: 16,666,667 shares priced at $18.00
• Listing on Nasdaq Global Select Market under ticker AVLN
• Underwriters granted a 30-day option for 2,500,000 additional shares

Negative

• Offering proceeds subject to underwriting discounts, commissions and expenses
• Issuance of new shares will dilute existing ownership
• Company is clinical-stage with no commercial products disclosed

Market Reaction – AVLN

-2.68% $28.70

15m delay 31 alerts

-2.68% Since News

$28.70 Last Price

$26.00 $30.20 Day Range

-$34M Valuation Impact

$1.23B Market Cap

1.0x Rel. Volume

Following this news, AVLN has declined 2.68%, reflecting a moderate negative market reaction. Our momentum scanner has triggered 31 alerts so far, indicating elevated trading interest and price volatility. The stock is currently trading at $28.70. This price movement has removed approximately $34M from the company's valuation.

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Key Figures

IPO share count: 16,666,667 shares IPO price: $18.00 per share Gross proceeds: $300 million +5 more

8 metrics

IPO share count 16,666,667 shares Upsized initial public offering common stock

IPO price $18.00 per share Price to the public for IPO shares

Gross proceeds $300 million Expected gross proceeds before fees and expenses

Underwriter option shares 2,500,000 shares 30-day option to buy additional common shares

Underwriter option period 30 days Duration of option to purchase additional shares

Nasdaq trading date April 30, 2026 Expected first trading day on Nasdaq Global Select Market

Offering close date May 1, 2026 Expected closing of the IPO offering

Effectiveness date April 29, 2026 SEC effectiveness of registration statement

Market Reality Check

normal vol

Market Pulse Summary

This announcement details Avalyn’s IPO terms, including 16,666,667 shares priced at $18.00 per share...

Analysis

This announcement details Avalyn’s IPO terms, including 16,666,667 shares priced at $18.00 per share for expected gross proceeds of $300 million, plus a 2,500,000-share 30-day underwriter option. The shares are expected to start trading on April 30, 2026, with closing on May 1, 2026. Investors may watch how post-IPO updates, clinical progress, and capital deployment align with this financing and the company’s positioning in serious, rare respiratory diseases.

Key Terms

initial public offering, gross proceeds, underwriting discounts and commissions, Nasdaq Global Select Market, +3 more

7 terms

initial public offering financial

"today announced the pricing of its upsized initial public offering of 16,666,667 shares"

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.

gross proceeds financial

"The gross proceeds to Avalyn from the offering, before deducting the underwriting"

The total amount of cash a company receives from a financing event or sale before any fees, expenses, taxes or deductions are taken out. Investors watch gross proceeds because it shows the raw scale of new capital being raised—think of it as the paycheck amount before withholdings—which helps assess how much funding is available for operations, growth, debt payoff or how much shareholder dilution might occur once costs are removed.

underwriting discounts and commissions financial

"before deducting the underwriting discounts and commissions and offering expenses"

Underwriting discounts and commissions are fees paid to financial institutions that help sell new securities to investors. They act like a commission for their role in connecting companies with buyers, often reducing the amount of money the issuing company raises. For investors, understanding these costs helps gauge how much of their investment is going toward the actual securities versus fees paid to middlemen.

Nasdaq Global Select Market financial

"shares are expected to begin trading on the Nasdaq Global Select Market on April 30, 2026"

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.

joint book-running managers financial

"Morgan Stanley, Jefferies, Evercore ISI and Guggenheim Securities are acting 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.

registration statement regulatory

"A registration statement relating to this 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.

prospectus regulatory

"The offering is being 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.

AI-generated analysis. Not financial advice.

BOSTON, April 29, 2026 (GLOBE NEWSWIRE) -- Avalyn Pharma Inc. (Nasdaq: AVLN) (“Avalyn”), a clinical-stage biopharmaceutical company pioneering inhaled therapies to transform the treatment paradigm of serious, rare respiratory diseases, today announced the pricing of its upsized initial public offering of 16,666,667 shares of its common stock at a price to the public of $18.00 per share. The gross proceeds to Avalyn from the offering, before deducting the underwriting discounts and commissions and offering expenses, are expected to be $300 million. All of the shares are being offered by Avalyn. In addition, Avalyn has granted the underwriters a 30-day option to buy an additional 2,500,000 shares of its common stock at the initial public offering price, less underwriting discounts and commissions.

The shares are expected to begin trading on the Nasdaq Global Select Market on April 30, 2026 under the ticker symbol “AVLN.” The offering is expected to close on May 1, 2026 subject to the satisfaction of customary closing conditions.

Morgan Stanley, Jefferies, Evercore ISI and Guggenheim Securities are acting as joint book-running managers for the offering.

A registration statement relating to this offering has been filed with the Securities and Exchange Commission and was declared effective on April 29, 2026. The offering is being made only by means of a prospectus. Copies of the final prospectus, when available, 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 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 Avalyn

Avalyn aims to transform the treatment paradigm for pulmonary fibrosis and other serious, rare respiratory diseases. The company is advancing optimized inhaled formulations of established antifibrotic medicines designed to deliver drug directly to the lungs, enhance local efficacy, and reduce systemic side effects. Avalyn’s AP01 program is an optimized inhaled formulation of pirfenidone currently being evaluated in MIST, a global Phase 2b clinical trial in patients with progressive pulmonary fibrosis (“PPF”). AP01 has demonstrated encouraging tolerability and clinical activity across Phase 1b and an ongoing, multi-year open-label extension trial, with long-term data supporting the potential to preserve lung function while improving tolerability relative to historical oral pirfenidone data. Avalyn’s AP02 program is an optimized inhaled formulation of nintedanib currently being evaluated in AURA, a global Phase 2 clinical trial in patients with idiopathic pulmonary fibrosis (“IPF”). Avalyn is also advancing AP03, an inhaled fixed-dose combination of pirfenidone and nintedanib, designed to deliver dual antifibrotic mechanisms through a single lung-targeted platform. By leveraging its proprietary drug-device approach and deep expertise in rare respiratory disease development, Avalyn aims to establish a new standard of care in pulmonary fibrosis through inhaled, lung-targeted therapies.

Cautionary Note Regarding Forward-Looking Statements

This press release includes certain disclosures that contain “forward-looking statements,” including, without limitation, statements regarding Avalyn’ expectations regarding the commencement of trading of its shares on the Nasdaq Global Select Market, the completion and timing of the closing of the offering and the anticipated gross proceeds from the offering. Forward-looking statements are based on Avalyn’ current expectations and are subject to inherent uncertainties, risks and assumptions that are difficult to predict. Factors that could cause actual results to differ include, but are not limited to, risks and uncertainties related to the satisfaction of customary closing conditions and the completion of the offering, and the risks inherent in biopharmaceutical product development. These and other risks and uncertainties are described more fully in the section titled “Risk Factors” section of the registration statement filed with the Securities and Exchange Commission. Forward-looking statements contained in this announcement are made as of this date, and Avalyn undertakes no duty to update such information except as required under applicable law. Readers should not rely upon the information on this page as current or accurate after its publication date.

Media Contact:
Kat Lippincott, Deerfield Group
kat.lippincott@deerfieldgroup.com
media@avalynpharma.com

Investor Contact:
Cassie Saitow, Avalyn Pharma Inc.
Sr. Director, IR and Corporate Communications
ir@avalynpharma.com

FAQ

What did Avalyn (AVLN) price its IPO at and how many shares were offered?

Avalyn priced its IPO at $18.00 per share for 16,666,667 shares. According to the company, all offered shares are primary and the gross proceeds are expected to be about $300 million before fees.

When will AVLN begin trading on Nasdaq and what is the ticker symbol?

AVLN is expected to begin trading on the Nasdaq Global Select Market on April 30, 2026 under the ticker AVLN. According to the company, the offering is expected to close on May 1, 2026, subject to customary conditions.

Does Avalyn's IPO include an overallotment option and how large is it?

Yes. According to the company, underwriters have a 30-day option to buy an additional 2,500,000 shares at the IPO price, which would increase total shares sold if exercised.

How much net capital will Avalyn receive from the IPO after fees?

The company expects gross proceeds of about $300 million, but actual net proceeds will be lower after underwriting discounts, commissions and offering expenses, per Avalyn.

What stage is Avalyn's business at and does the IPO fund commercialization?

Avalyn is a clinical-stage biopharmaceutical company focused on inhaled therapies. According to the company, the offering proceeds are expected to support development, though specific uses are in the prospectus.