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Gossamer Bio sets terms for $230 million IPO, bypassing shutdown with rarely-used 20-day rule

January 23, 2019

Gossamer Bio, which is developing immunology-based therapies for asthma and other indications, announced terms for its IPO on Wednesday.

The San Diego, CA-based company plans to raise $230 million by offering 14.4 million shares at a price of $16. Insiders plan to purchase approximately $100 million of the IPO (43% of the deal). At $16 per share, Gossamer Bio would command a fully diluted market value of $1.0 billion. 

Because of the partial US government shutdown, Gossamer plans to rely on Section 8(a) of the Securities Act, which allows a company to file with a fixed price and have its IPO registration become effective 20 calendar days later. Therefore, the biotech is expected to price on February 12, and begin trading the next day.

In a press release, Gossamer stated that it will re-evaluate its use of the 20-day rule if the SEC resumes normal operations prior to February 12.

Gossamer Bio was founded in 2015 and plans to list on the Nasdaq under the symbol GOSS. BofA Merrill Lynch, SVB Leerink, Barclays, and Evercore ISI are the joint bookrunners on the deal.