Arena Pharmaceutcals raises IPO to 6 mln shares
WASHINGTON, July 25 (Reuters) - Arena Pharmaceuticals Inc. on Tuesday raised its initial public offering (IPO) to 6 million shares of common stock from 5 million shares.
The company, which says it has developed technology that identifies drug candidates more efficiently that traditional techniques, still plans to offer the shares in a projected price range of $15 to $17 per share.
The new terms, which were revealed in an amended prospectus filed with the Securities and Exchange Commission, increases net proceeds it expects from the IPO 20 percent to $88.1 million from the previously expected amount of $73.2 million.
It plans to use the net proceeds from the IPO for general corporate purposes, including working capital, research and development and clinical testing, the filing showed.
ING Barings and SG Cowen, the underwriters managing the IPO, have been allotted 900,000 additional shares to cover over-allotments.
After the IPO, there will be about 21 million shares outstanding in the company, giving it an initial capitalisation of $336 million, based on a $16 per share median price.