SoftBank-Backed Relay Therapeutics Jumps in Trading Debut

17 Jul 2020, 06:41 AM IST

(Bloomberg) -- Oncology drug developer Relay Therapeutics Inc. surged 75% in its trading debut after expanding its initial public offering to raise $400 million.

Relay’s shares closed at $35.05 Thursday in New York trading, giving the Cambridge, Massachusetts-based company a market value of about $3 billion.

The company sold 20 million shares for $20 apiece on Wednesday, pricing them above the marketed range of $18 to $19. Relay had earlier increased the size of the offering from 14.7 million shares and boosted the target range from $16 to $18.

Masayoshi Son’s SoftBank Vision Fund invested $300 million in Relay in a 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 rounds since its founding.

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 the protein SHP2 to thwart the growth of cancer cells.

Relay had a net loss of $75 million for 2019, compared with a net loss of $49 million the previous year, as its research and development expenses increased, according to its filings with the U.S. Securities and Exchange Commission.

The offering was led by JPMorgan Chase & Co., Goldman Sachs Group Inc., Cowen Inc. and Guggenheim Securities. The company’s shares are trading on the Nasdaq Global Market under the symbol RLAY.