- Bambusa priced an upsized IPO. The Boston-based biotech sold 10.556 million shares at $16 each, the midpoint of its $15 to $17 range, raising $168.9 million after initially marketing 9.375 million shares.
- The deal values the company at $815 million. That is based on outstanding shares listed in its filing, and the stock is expected to start trading Friday on the Nasdaq Global Select Market under the symbol BBTX.
- Its pipeline came from BioNTech. Founded in 2024, Bambusa acquired its lead drug candidates from a BioNTech unit, one for atopic dermatitis, or eczema, and another for respiratory, allergic and other inflammatory diseases, all built on long-acting bispecific antibodies.
- Losses are widening as it scales. Bambusa posted a net loss of $22.4 million with no revenue in the six months to June 30, versus $13.0 million a year earlier, and had $71.5 million of cash at the end of June.
What Happened?
Bambusa Therapeutics, an early-stage biotech focused on dermatology and autoimmune diseases, raised $168.9 million in its US initial public offering, Bloomberg reported. The company sold 10.556 million shares at $16, up from the 9.375 million shares it had marketed at $15 to $17. Salvia Investment is expected to own nearly 18% after the IPO, co-founder and former BioNTech executive Shanshan Xu 17% and RA Capital Management 9%. Bank of America, Evercore, UBS and Cantor Fitzgerald led the offering.
Why It Matters?
An upsized deal priced at the midpoint is a solid signal for the biotech IPO window. Bambusa sold about 12.6% more shares than it originally marketed (our calculation), showing investors still want immunology and inflammation assets despite a choppy market. Its net loss rose about 72% year over year in the first half (our calculation), so the IPO money is key to funding trials. The company completed a $33.1 million round in November with investors including RA Capital, Janus Henderson and KKR-controlled Dawn Biopharma, at a big step-up from an $89 million round earlier that year.
What’s Next?
Friday’s Nasdaq debut will show whether investors are willing to pay above the $16 offer price for an early-stage company with no revenue. After that, attention turns to clinical progress on its eczema candidate and its second program for respiratory and allergic disease. A strong first day could encourage more biotechs to test the IPO market before year-end, while a weak one would signal that investors remain selective.
Affected Tickers and Coins: BBTX, BNTX, KKR, XBI
Source: Bloomberg
