Kyverna Therapeutics targets up to $711 mln valuation in US IPO

Feb 1 (Reuters) - Biotechnology company Kyverna Therapeutics said on Thursday it was aiming for a market valuation of up to $711 million in its U.S. initial public offering (IPO).

The company, backed by names such as Bain Capital Life Sciences Opportunities and Gilead Sciences, plans to raise up to $211.3 million by selling about 11 million shares priced between $17 and $19 each.

The U.S. IPO market is expected to rebound in 2024 as bets of a soft landing for the U.S. economy rise, after two subpar years fueled by geopolitical pressures and the Federal Reserve's aggressive quantitative tightening to curb inflation.

Investments in biotech companies over the past two years have been a fraction of historical levels. After 108 IPOs in 2021, there were only 18 each in 2022 and 2023 as of mid-December.

Biotech company and cancer drug developer CG Oncology debuted at $29 per share last week, above its offer price of $19, while KKR-backed BrightSpring Health Services also debuted last week at $12 per share below its $13 offer price, highlighting investor apprehensions about fresh stocks.

Kyverna Therapeutics, founded in 2018, is a clinical stage cell therapy company that aims to bring disease-modifying therapeutic benefits to patients suffering from autoimmune diseases.

The company is looking to advance its lead product candidate, KYV-101, through clinical development across two broad areas of autoimmune disease - rheumatology and neurology.

Kyverna Therapeutics plans to list on the Nasdaq under the symbol "KYTX".

J.P. Morgan, Morgan Stanley, Leerink Partners and Wells Fargo Securities are acting as the underwriters of the offering. (Reporting by Pritam Biswas in Bengaluru; Editing by Shinjini Ganguli)