German psychedelic startup Atai targets valuation of $2.3 billion in U.S. IPO

German psychedelic startup Atai targets valuation of $2.3 billion in U.S. IPO

(Reuters) – Atai Life Sciences B.V., backed by billionaire investor Peter Thiel, said on Friday it was looking to raise as much as $214.3 million through a U.S. initial public offering, targeting a valuation of about $2.3 billion.

The Berlin-based biotech startup, which is exploring the use of psychedelic treatments for mental health disorders, said it planned to sell around 14.29 million shares priced between $13 and $15 per share. (bit.ly/3iA5ste)

Atai’s co-founder Christian Angermayer is an advocate of the mental health benefits of psychedelics such as psilocybin, the active ingredient in so-called magic mushrooms, for the treatment of depression, anxiety and substance use disorders.

The company has raised $157 million from investors at a valuation of about $2 billion and was considering floating its shares in the U.S. in May, Reuters reported in March, citing a source close to the matter.

Launched in 2018, Atai has raised $362.3 million in cash so far, a regulatory filing showed.

Atai will be listed on the Nasdaq and will trade under the ticker symbol “ATAI”.

Credit Suisse, Citigroup, Cowen and Berenberg were the lead underwriters for the offering.

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