Reata Pharmaceuticals, which is developing therapies to treat life-threatening forms of pulmonary hypertension, announced terms for its IPO on Monday.
The Irving, TX-based company plans to raise $60 million by offering 4.0 million shares at a price range of $14 to $16. Insiders intend to purchase $45 million worth of shares (75%) in the offering. At the midpoint of the proposed range, Reata Pharmaceuticals would command a fully diluted market value of $300 million. Novo A/S is the company's top shareholder.
Reata Pharmaceuticals was founded in 2002 and booked $50 million in sales for the 12 months ended March 31, 2016. It plans to list on the Nasdaq under the symbol RETA. Citi, Cowen & Company and Piper Jaffray are the joint bookrunners on the deal. It is expected to price during the week of May 23, 2016.
