Verona Pharma, which is developing inhaled treatments for respiratory diseases, announced terms for its US IPO on Tuesday. The biotech currently trades on London's AIM market under the symbol VRP, and plans to list on the Nasdaq under the symbol VRNA.
The London, UK-based company is set to offer shares representing 5.6 million ADSs; at its converted AIM price of $13.49, the company would raise $75 million at a diluted market value of $163 million. Insiders intend to purchase $23 million worth of shares in the offering (31%). The $75 million deal consists of a US offering of ADSs ($60 million) and a European private placement ($15 million).
Verona Pharma was founded in 2005 and booked a net loss of $6.2 million during the 12 months ended December 31, 2016. Jefferies and Stifel are the joint bookrunners on the deal. It is expected to price during the week of April 24, 2017.
