(Reuters) -Septerna shares rose about 31% in their market debut on Friday, giving the Goldman Sachs-backed biotech company a valuation of $970 million.
The company’s shares opened at $23.5 in their Nasdaq debut, compared to the IPO price of $18. Septerna twice raised its offer Thursday to sell 16 million shares to raise $288 million.
Biotech companies’ public listings have been warmly welcomed by investors this year, with September one of the busiest months for healthcare IPOs, Dealogic data shows.
Biotech companies MBX Biosciences and TPG-backed Bicara Therapeutics went public last month, with shares trading 33% and 25.6% above their IPO prices, respectively.
The Federal Reserve’s move to ease monetary policy last month, along with a buoyant stock market, are key aspects that will drive investor optimism about new listings coming to market this fall.
California-based Septerna is developing therapies that target G protein-coupled receptors (GPCR), a class of proteins that serve as a key conduit for chemicals to cross the cell membrane and be taken up by a cell.
GPCR can influence broad physiological processes such as metabolism, secretion, cell growth and immune responses.
The company will use the proceeds to further its research and develop its products, including SEP-786, its lead candidate for the treatment of hypoparathyroidism, a condition that disrupts calcium levels in the blood and bones.
JP Morgan, TD Cowen, Cantor and Wells Fargo Securities are acting as joint bookrunners for the IPO.
Goldman owns a 5.4% stake in the company, while healthcare-focused venture capital firm Third Rock Ventures owns 33.5%.
(Reporting by Pritam Biswas in Bengaluru; Editing by Vijay Kishore)
