Zenas BioPharma, which develops immunology-based therapies, said on Thursday that it has raised $225 million in its U.S. initial public offering (IPO).

The clinical-stage company, backed by drugmaker Bristol-Myers Squibb, priced its offering of 13.2 million shares at $17 apiece, the midpoint of its targeted range of $16 to $18 per share.

Despite 2024 being touted as a comeback year by several analysts, the U.S. IPO market has struggled to gain traction. Weak market conditions have resulted in several firms abandoning their plans to go public.

Zenas, which does not have any products approved for commercial sale, is developing its lead candidate obexelimab for the treatment of various immunology and inflammation diseases.

These include multiple sclerosis, a chronic neurological disorder, and systemic lupus erythematosus (SLE), a chronic disease where the body's immune system attacks its own tissues.

The Waltham, Massachusetts-based company, which was incorporated in 2019, plans to use the IPO proceeds to advance the clinical development of obexelimab and prepare for its potential launch in the United States and Europe, pending approval.

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

Biotechnology company MBX Biosciences and biopharmaceutical firm Bicara Therapeutics are also set to go public on Friday alongside Zenas.

Morgan Stanley, Jefferies, Citigroup Global Markets and Guggenheim Securities are underwriting Zenas' offering.

(Reporting by Rishabh Jaiswal and Pritam Biswas in Bengaluru; Editing by Tasim Zahid and Sonia Cheema)