Zymeworks files 2nd amendment for up to US $83M IPO

Zymeworks Inc., a clinical-stage biopharmaceutical company focused on the treatment of cancer, has filed a second amendment to its preliminary prospectus in connection with its proposed initial public offering.

Zymeworks intends to issue 4,500,000 common shares at an offering price of between US $13.00 and US $16.00 per common share for gross proceeds of between US $58.5 million and $72 million (all figures in US dollars).

If the granted over-allotment option of 675,000 common shares were to exercise in full, Zymeworks would receive up to $82.8 million at $16 per share, the top end of the price range, or up to $75 million at $14.50 per common share, the midpoint of the price range.

At $14.50 and immediately following the closing the IPO, Zymeworks would have 24,196,483 shares or 24,871,483 shares outstanding, if the over-allotment option is exercised in full. Zymeworks would be valued at $361 million.

Certain of existing shareholders, including Eli Lilly and Celgene, have indicated an interest in purchasing an aggregate of up to $42 million of common shares in this offering.

From inception in September 2003 through December 31, 2016, Zymeworks raised $115.5 million in equity financing. Eli Lilly (17.5%, pre-IPO), CTI Life Sciences Fund (14.6%), Ian Ihnatowycz (8.5%, through Advanced Biotechnologies Venture Fund (VCC) and First Generation Capital), and Celgene (6.1%) were the greater than 5% shareholders.

Eli Lilly has invested $37.8 million in equity in Zymeworks, leading the $61.5 million Series A closed in January 2016 with $12 million. The Series A was announced as co-led by BDC Capital ($10 million), Lumira Capital ($4 million).

Zymeworks’s other shareholders include Fonds de solidarité, Titan-Perc Ltd., Teralys Capital, Northleaf Venture Catalyst Fund, Brazyme LLC, Merlin Nexus, and MTS Securities.

photo credit: Zymeworks

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.