Bristol-Myers Squibb-backed Zenas BioPharma seeks up to $689.7 million valuation in US IPO

(Reuters) - Zenas BioPharma, which is developing immunology-based therapies, said on Friday it is targeting a valuation of as much as $689.7 million in its initial public offering in the United States.

The company, backed by drugmaker Bristol-Myers Squibb, is looking to raise as much as $211.7 million by offering 11.76 million shares priced between $16 and $18 each.

The proposed offering comes months after Zenas raised $200 million in a funding round led by venture capital firm SR One.

The Waltham, Massachusetts-based company is developing its lead product candidate, obexelimab, for the treatment of several immunology and inflammation diseases including multiple sclerosis and systemic lupus erythematosus (SLE).

SLE is a chronic disease where the body's immune system attacks its own tissues and multiple sclerosis is a chronic neurological disorder.

To date, Zenas does not have any products approved for commercial sale and is yet to generate any revenue.

The listing comes as the U.S. IPO market returns back from its traditional summer lull.

The company's backers also include investment firms Fairmount Funds and Norwest Venture Partners.

Zenas will list on the Nasdaq Global Select Market under the ticker symbol "ZBIO".

The offering is being underwritten by Morgan Stanley, Jefferies, Citigroup Global Markets and Guggenheim Securities.

(Reporting by Arasu Kannagi Basil in Bengaluru)