MapLight Therapeutics (MPLT.US) plans to raise $251 million under rare legal provisions to move forward with its IPO process during the U.S. government shutdown.

Biotechnology company MapLight Therapeutics, headquartered in Redwood City, California, announced on Monday its initial public offering (IPO) terms. The company plans to raise approximately $251 million by issuing 14.8 million common shares at a price of $17 per share. At this price, the company's fully diluted market value is estimated to be around $820 million. MapLight is primarily focused on developing innovative therapies for treating neurological, psychiatric, and central nervous system (CNS) diseases. The filing shows that cornerstone investor T. Rowe Price has subscribed to approximately $40 million worth of shares, accounting for 16% of the total offering. In addition, MapLight also plans to conduct a private placement of $8 million with Goldman Sachs. The unique aspect of this IPO is that the U.S. government is currently in a shutdown, and the Securities and Exchange Commission (SEC) has paused the formal effectiveness review of registration statements. To bypass this obstacle, MapLight has decided to proceed with the listing process based on the rare provision of Section 8(a) of the 1933 Securities Act. According to this provision, if the company does not include the "Rule 473 Delayed Effective" provision in the registration statement, the registration will automatically become effective after 20 days. MapLight stated that it plans to set the price officially after 20 days, but if the SEC resumes normal operations before October 26, the company will reevaluate whether to continue relying on this provision. If there are significant changes in market demand, the company may resubmit the offering documents, but any new applications will restart the 20-day waiting period. MapLight's core research pipeline is focused on the treatment of schizophrenia and Alzheimer's disease psychosis (ADP). Their lead candidate drug, ML-007C-MA, is a fixed-dose combination therapy combining M1/M4 cholinergic receptor agonists with peripheral anticholinergic drugs to improve cognitive and psychiatric symptoms. The company is currently conducting two Phase II clinical trials: one for schizophrenia patients, with main results expected to be announced in the second half of 2026, and another for ADP research, with key data expected to be announced in the second half of 2027. Founded in 2018, MapLight plans to list on the Nasdaq with the stock symbol "MPLT." Morgan Stanley, J.P. Morgan, Leerink Partners, and Stifel are serving as joint underwriters for this offering, and the company expects to complete pricing during the week of October 27, 2025. Analysts point out that in the unique backdrop of the U.S. government shutdown, MapLight is one of the few companies choosing to go public under the Section 8(a) provision. This not only reflects their determination to expedite their access to the capital market but also could potentially serve as a reference case for future biopharmaceutical companies in situations of government shutdown.