J&J-backed Rapport Therapeutics raises $154 million in US IPO

(Reuters) - Rapport Therapeutics said on Thursday that it has raised $154 million in its initial public offering in the United States at a valuation of about $601.4 million.

The company said it plans to sell 8 million shares at $17 each, priced at the midpoint of its indicated price range of $16-$18 apiece.

Rapport, backed by the venture capital arm of Johnson & Johnson develops small molecule medicines for patients suffering from central nervous system disorders.

The Boston, Massachusetts-based company was formed in February 2022 with founding support from Third Rock Ventures and Johnson & Johnson Innovation-JJDC.

Initially named Precision Neuroscience NewCo, Rapport has said that it plans to use a portion of the IPO proceeds to advance the clinical development of its lead product candidate, RAP-219, for the treatment of focal epilepsy.

The IPO shows that the U.S. IPO market has made a strong comeback after two dismal years.

Companies have raised more than $15 billion this year via IPOs on U.S. exchanges, according to Dealogic, up sharply from about $9.1 billion at this point last year, the data shows.

Rapport's shares are expected to begin trading on the Nasdaq on June 7 under the ticker symbol "RAPP".

Goldman Sachs, Jefferies, TD Cowen and Stifel are the underwriters for the offering.

(This story has been corrected to fix the amount raised to $154 million from $136 million in the headline and paragraph 1)

(Reporting by Disha Mishra in Bengaluru; Editing by Alan Barona)