CG Oncology Announces Closing of Initial Public Offering and Full Exercise of Underwriters’ Option to Purchase Additional Shares

Rhea-AI Summary

CG Oncology, Inc. (Nasdaq: CGON) has successfully closed its upsized initial public offering, raising $437.0 million. The company offered 23,000,000 shares of its common stock at an initial public offering price of $19.00 per share. The underwriters exercised their option to purchase 3,000,000 additional shares. CG Oncology's common stock is listed on the Nasdaq Global Select Market under the ticker symbol 'CGON'. The offering was managed by Morgan Stanley, Goldman Sachs & Co. LLC, and Cantor, with LifeSci Capital acting as co-manager. Registration statements relating to the offering have been filed with the SEC and became effective on January 24, 2024.

Positive

Negative

Financial Analyst

The completion of CG Oncology's upsized initial public offering (IPO) is a significant financial milestone for the company, indicative of robust investor interest. The offering's upsizing, with the underwriters fully exercising their option to purchase additional shares, suggests strong market demand. The generated capital of $437.0 million, before expenses, provides a substantial cash reserve for the company's operations and research activities. This influx of funds is crucial for CG Oncology's strategy to develop bladder cancer treatments, potentially accelerating the timeline for bringing their therapies to market.

The pricing of shares at $19.00 indicates the value proposition that the company and its underwriters believe the market will support. The involvement of prominent financial institutions as book-running managers and co-managers lends credibility to the offering. Investors will closely monitor how the company allocates this capital, looking for efficient use that enhances shareholder value, such as advancing clinical trials, expanding the research pipeline, or preparing for commercialization.

Medical Research Analyst

CG Oncology's focus on bladder cancer therapies is crucial given the unmet medical need in this area. Bladder cancer is among the top ten most common cancers and the development of a bladder-sparing therapeutic could represent a paradigm shift in treatment standards. The successful IPO provides the financial resources needed to continue late-stage clinical trials. The outcome of these trials will be pivotal in determining the therapeutic's efficacy and safety, which, if positive, could lead to a significant competitive advantage in the oncology market.

Investors and patients alike will be interested in the company's progress, as the success of their product could not only lead to substantial revenues but also offer a better quality of life for patients. However, it is important to note the inherent risks of biopharmaceutical development, where a single trial's outcome can drastically affect the company's valuation and future prospects.

Market Research Analyst

The listing of CG Oncology on the Nasdaq Global Select Market under the ticker 'CGON' introduces the company to a broader range of institutional and retail investors, potentially increasing stock liquidity and visibility. The market's reception to the IPO and subsequent stock performance will serve as indicators of investor confidence in CG Oncology's business model and growth potential. Market analysts will also compare CG Oncology's valuation and performance against its peers in the biopharmaceutical sector, assessing whether the company can capture and sustain a significant market share within the oncology space.

Long-term, the company's ability to meet development milestones and manage the transition from a clinical-stage to a commercial entity will be critical. The success of its product portfolio and pipeline development will be closely scrutinized by investors seeking growth opportunities in the biopharmaceutical industry.

IRVINE, Calif.--(BUSINESS WIRE)-- CG Oncology, Inc. (Nasdaq: CGON), a late-stage clinical biopharmaceutical company focused on developing and commercializing a potential backbone bladder-sparing therapeutic for patients afflicted with bladder cancer, today announced the closing of its upsized initial public offering of 23,000,000 shares of its common stock, which includes the exercise in full by the underwriters of their option to purchase 3,000,000 additional shares, at an initial public offering price of $19.00 per share. All of the shares were offered by CG Oncology. The aggregate gross proceeds from the offering, before deducting underwriting discounts and commissions and other offering expenses, were $437.0 million. CG Oncology’s common stock is listed on the Nasdaq Global Select Market under the ticker symbol “CGON.”

Morgan Stanley, Goldman Sachs & Co. LLC and Cantor acted as joint book-running managers for the offering. LifeSci Capital acted as co-manager for the offering.

Registration statements relating to the offering have been filed with the Securities and Exchange Commission (SEC) and became effective on January 24, 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 prospectus. Copies of the final prospectus may be obtained from Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2^nd Floor, New York, NY 10014, or by email at prospectus@morganstanley.com; Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at Prospectus-ny@ny.email.gs.com; or Cantor Fitzgerald & Co., Attention: Capital Markets, 110 East 59th Street, 6th Floor, New York, NY 10022, or by email at prospectus@cantor.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 offer or 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 CG Oncology

CG Oncology is a late-stage clinical biopharmaceutical company focused on developing and commercializing a potential backbone bladder-sparing therapeutic for patients afflicted with bladder cancer. CG Oncology sees a world where urologic cancer patients may benefit from its innovative immunotherapies to live with dignity and have an enhanced quality of life.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240130316882/en/

Investor Relations

Bing Kung

Vice President, Corporate Development

CG Oncology

bd@cgoncology.com

Media

Kimberly Ha

KKH Advisors

(917) 291-5744

kimberly.ha@kkhadvisors.com

Source: CG Oncology, Inc.

FAQ

What is the ticker symbol for CG Oncology, Inc.?

The ticker symbol for CG Oncology, Inc. is 'CGON'.

How much was raised in CG Oncology's initial public offering?

CG Oncology raised $437.0 million in its initial public offering.

When did the registration statements relating to the offering become effective?

The registration statements relating to the offering became effective on January 24, 2024.

Who managed CG Oncology's initial public offering?

Morgan Stanley, Goldman Sachs & Co. LLC, and Cantor acted as joint book-running managers for the offering, with LifeSci Capital acting as co-manager.