RiboGene Files to Sell 2.3 Million Shares in IPO

RiboGene Inc., a drug development company based in Hayward, filed with the Securities and Exchange Commission to sell 33.6% of its common stock through an initial public offering. The IPO calls for the sale of 2.3 million common shares at $10 to $12 each. RiboGene expects to raise about $22.8 million after expenses. It would use the money to establish its internal chemistry capabilities, to expand and advance its antibacterial program and to establish new drug discovery programs. Some of the money would also be devoted to debt repayment, working capital and general corporate purposes. RiboGene is developing drug candidates for the treatment of infectious diseases that are resistant to existing therapies. Everen Securities Inc., Gruntal & Co. and Cruttenden Roth Inc. plan to underwrite the stock sale for RiboGene, which would trade on Nasdaq under the symbol RIBO. The company would have 6.85 million shares outstanding after the IPO.