Fidelity and Arch back RNAi upstart City Therapeutics (CTY.US) as it sprints toward a U.S. IPO, aiming to raise up to $185 million.

Early-stage RNAi drug developer City Therapeutics Inc. (CTY.US) is seeking to raise up to $184.7 million in a U.S. initial public offering. According to a filing with the U.S. Securities and Exchange Commission on Friday, the company, whose investors include Arch Venture Partners and Fidelity Management & Research Company, plans to offer 9.72 million shares at $17 to $19 apiece. The Cambridge, Massachusetts-based company would have a valuation of about $956.3 million at the top of the price range, based on the issued shares disclosed in the prospectus. The proposed listing comes after similar gene therapy company Adarx Pharmaceuticals (ADRX.US) raised $446.3 million in its IPO last month to strong market reception. New listings in the biotech and pharmaceutical sector have raised a combined $7.8 billion this year, compared with just $1.3 billion in the same period of 2025, according to compiled data. City is developing RNAi-based drugs to treat thromboembolic disease and Stargardt disease, an inherited form of macular degeneration that occurs in children and young adults. The company's lead product is in early-stage trials for the prevention of thromboembolic disease, while other candidates are in preclinical development or drug discovery. City expects to report data from a Phase 1 study this year. John Maraganore, founding CEO of RNAi drug developer Alnylam Pharmaceuticals, Inc. (ALNY.US), is a co-founder of City and currently serves as executive chairman. The company has established strategic collaborations with Bausch + Lomb (BLCO.US) and Biogen (BIIB.US) to advance RNAi therapies for eye diseases and central nervous system disorders. For the six months ended June 30, 2026, City reported a net loss of $53.4 million and collaboration revenue of $6.4 million, compared with a net loss of $24.3 million and revenue of $5.6 million a year earlier, according to the filing. Since its founding in 2023 through June 30, City has raised $238.8 million through private financings, according to the filing. Before the IPO, Arch held a 35% stake in the company, while Fidelity held 10%. The company previously announced that in June this year it completed a Series B round of about $99.5 million, with Viking Global Investors and Sofinnova Investments joining as new investors, alongside existing investors including Arch and Fidelity. The offering is led by Goldman Sachs Group, Inc., Jefferies Financial Group Inc., Stifel Financial Corp. and Oppenheimer & Co. City expects its shares to trade on the Nasdaq Global Market under the ticker symbol CTY.