Biotech Kyverna Surges 36% in Debut After Boosting IPO Size

biotech kyverna surges 36% in debut after boosting ipo size

A set of glass vials sit in a laboratory under an orange light in Denmark.

(Bloomberg) — Kyverna Therapeutics Inc. rose as much as 59% in early trading after its expanded US initial public offering raised $319 million, as drug developers continue to receive a warm welcome from new investors.

Emeryville, California-based Kyverna’s shares gave back some of those gains to end the session at $30 each on Thursday in New York, 36% above the IPO price of $22. At that price, the Bain Capital-backed biotechnology company has a market value of about $1.2 billion.

The opening surge was the biggest for a company raising more than $100 million in an IPO since Cava Group Inc.’s $365 million debut in June, according to data compiled by Bloomberg. Strong demand led the company to boost both the size and the targeted price range. It sold 14.5 million shares on Wednesday, according to a statement, after having marketed the shares for $20 to $21 each.

Kyverna had a tough time deciding who to allocate shares to given “very large mutual funds were willing to come into the story and wanted to be part of” the deal, Chief Executive Officer Peter Maag said in an interview. The IPO was about “20-times oversubscribed,” he said.

“This is a tremendous outcome for the organization as it gives us the capital to execute our clinical trial program,” Maag said. The funds are expected to provide a runway into 2026 and will set it up for potential pivotal trials, he said.

The strong results continue a streak of therapeutics companies drawing heightened investor demand. The offering is the second-largest for a drug developer this year, after cancer-focused CG Oncology Inc. raised $437 million two weeks ago, according to data compiled by Bloomberg. Its shares have more than doubled since its debut.

Kyverna’s lead medicine is a CAR T-cell therapy for autoimmune diseases in rheumatology and neurology. Bain Capital, Gilead Sciences Inc., Vida Ventures LLC and Westlake BioPartners are among Kyverna’s largest investors, according to the company’s filings with the US Securities and Exchange Commission.

Kyverna is part of a busy week for US IPOs that includes American Healthcare REIT Inc., which raised $672 million and is up nearly 10%, and a Mexican grocery chain. Also in biotech, Moderna Inc.-backed Metagenomi Inc.’s offering is slated to price later Thursday.

Kyverna’s offering was led by JPMorgan Chase & Co., Morgan Stanley, Leerink Partners and Wells Fargo & Co. It’s trading on the Nasdaq under the symbol KYTX.

(Updates share movement throughout, adds CEO commentary starting in fourth paragraph.)

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