Targacept sets beginning IPO price talk at $11 to $13 per share

By Ted A. Knutson

Washington, March 16 - Targacept, Inc. set the beginning price range for its planned initial public offering of common stock at $11 to $13 per share for 5 million shares in an amendment to its S-1 registration with the Securities and Exchange Commission.

The greenshoe is for up to 750,000 shares.

At the midpoint of price guidance, net proceeds to the company are estimated at $54.7 million, or $63.1 million if the greenshoe is fully exercised. The money will be used for research and development and for general corporate purposes.

The Winston-Salem, N.C.-based firm is a biopharmaceutical company engaged in the design, discovery and development of a new class of drugs to treat multiple diseases and disorders of the central nervous system by selectively targeting neuronal nicotinic receptors or NNRs.

NNRs are found on nerve cells throughout the nervous system and serve as key regulators of nervous system activity.

Deutsche Bank Securities will be the bookrunner for the offering. Pacific Growth Equities LLC, CIBC World Markets and Lazard Capital Markets will be co-managers for the offering.

The company has applied to list its common stock on the Nasdaq National Market under the symbol "TRGT."

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