NEW YORK ─ RenalytixAI on Monday said that it has set the terms for its previously announced US initial public offering, saying the estimated net proceeds from the sale of 11,000,000 shares, including those represented by American Depositary Shares (ADSs) in the offering, will be approximately $69.9 million after deducting estimated underwriting discounts and commissions and other offering expenses.
In a filing with the US Securities and Exchange Commission, New York-based RenalytixAI said that the net proceeds amount is based on an assumed initial public offering price of $14.22 per ADS in the US offering, and an assumed offering price of £5.70 ($7.19) per ordinary share in the European private placement ─ the closing price of its ordinary shares on the Alternative Investment Market (AIM), a sub-market of the London Stock Exchange, on July 10, based on an exchange rate of $1.2469 per £1.00 as of July 2 and an ADS-to-share ratio of 1-to-2.
The firm said that if the underwriters exercise in full their option to purchase 825,000 additional ADSs, and assuming the maximum number of ADSs is issued in the global offering, it anticipates that the net proceeds from the global offering will be approximately $80.8 million after deducting estimated underwriting discounts and commissions and other offering expenses.
JP Morgan Securities and Stifel Nicolaus are acting as joint global coordinators and joint book-running managers of the offering and as representatives of the underwriters.
RenalytixAI, a company that provides artificial intelligence-enabled diagnostic tests for kidney disease, said that the principal purposes of the offering are to obtain additional capital to support its operations, create a public market for its ADSs in the US, and facilitate future access to the US public equity markets. The company said it anticipates using about $25 million to $30 million of the net proceeds for the continued development and planned commercialization of the KidneyIntelX platform.