UPDATE 2-Gilead-backed Kyverna Therapeutics aims for $857.3 mln valuation in upsized IPO

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Feb 6 (Reuters) - Kyverna Therapeutics expects up to $857.3 million valuation in its U.S. initial public offering (IPO), the biotechnology company said on Tuesday as it raised its offering.

The company, backed by Gilead Sciences and Bain Capital Life Sciences Opportunities, increased the pricing of its IPO and now plans to raise up to $304.5 million by selling 14.5 million shares priced between $20 and $21 apiece.

Earlier, Kyverna was planning to raise up to $211.3 million at a valuation of up to $711 million. It had offered to sell about 11 million shares priced at between $17 and $19 each.

The IPO market is looking for a comeback as bets of a soft landing for the U.S. economy have risen, after two subpar years fueled by the Federal Reserve's record aggressive interest rate hikes and various geopolitical pressures.

The market has seen several new entrants from the biotech sector, with CG Oncology and KKR-backed BrightSpring Health Services debuting last month.

However, investments in U.S. biotech companies over the past two years have been a fraction of historical levels. After 108 biotech IPOs in 2021, there were only 18 each in 2022 and 2023 as of mid-December.

Kyverna Therapeutics, founded in 2018, is a clinical-stage cell therapy company that aims to bring disease-modifying therapeutic benefits to patients suffering from autoimmune diseases.

Kyverna Therapeutics plans to list on the Nasdaq under the symbol "KYTX".

JPMorgan, Morgan Stanley, Leerink Partners and Wells Fargo Securities are acting as the underwriters of the offering. (Reporting by Jaiveer Singh Shekhawat in Bengaluru; Editing by Shweta Agarwal)