PYC Therapeutics (ASX:PYC) has successfully closed its institutional placement, and the institutional component of its three-for-five pro-rata accelerated non-renounceable entitlement offer, raising AU$537 million in commitments at AU$1.50 per new share, according to a Wednesday filing with the Australian bourse.

The placement issued around 85.5 million shares to raise AU$128 million, and the institutional entitlement offer issued about 273 million shares to raise AU$409 million, per the filing.

The company has satisfied the condition of its AU$200 million underwriting agreement, ensuring it will raise at least AU$600 million from the placement and entitlement offer, including the retail entitlement offer, the filing said.

The retail entitlement offer will be conducted at the same price and ratio as the institutional entitlement offer, allowing eligible retail shareholders to participate, and is expected to close on Feb. 27, the filing added.

The funds will be used to extend the company's cash runway through 2030, enabling the generation of critical human safety and efficacy data across all four of its drug development programs.