SoftBank-Backed Relay Therapeutics Seeks $265 Million in IPO

Oncology drug developer Relay Therapeutics Inc. set terms for a U.S. initial public offering that could raise as much as $265 million.

The Cambridge, Massachusetts-based company plans to market 14.7 million shares for $16 to $18 apiece, according to a filing Thursday with the U.S. Securities and Exchange Commission. At the top end of the range, the company would be valued at as much as $1.5 billion, based on the number of outstanding shares listed in the filing.

Masayoshi Son’s SoftBank Vision Fund invested $300 million in Relay Therapeutics in its 2018 Series C funding round, and holds a 41% stake in the company. An affiliate of D.E. Shaw & Co. also participated in the round, which raised a combined $400 million. Relay has raised a total of $520 million in private fundraising since it was founded.

The clinical-stage company has one drug candidate in Phase 1 trials and a second set for Phase 1 trials later this year. Its most advanced treatment binds and stabilizes SHP2, which promotes cancer cell survival and growth.

“All existing agents in this class have the same major side-effect profiles, often requiring lower dosing,” said Jeremy Abelson, founder and portfolio manager at the venture capital firm Irving Investors, which isn’t a backer of Relay. “Their lead asset truly has the potential to be best in class.”

Relay reported a net loss of $75 million for 2019 compared to a net loss of $49 million a year earlier, as its research and development expenses increased.

Relay’s offering is being led by JPMorgan Chase & Co., Goldman Sachs Group Inc., Cowen Inc. and Guggenheim Securities. The company plans to list its shares on the Nasdaq Global Market under the symbol RLAY.

— With assistance by Bailey Lipschultz

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