PepGen launches $125 million public offering of common stock

what happened

According to TradingView, PepGen, a clinical-stage biotechnology company developing oligonucleotide therapies for rare genetic diseases, has launched a public offering of common stock worth $125 million. Some of the securities may instead be sold as pre-funded warrants to certain investors.

Underwriters also received a 30-day option to buy additional shares worth up to $18.75 million. All securities in the offering are being sold by the company itself. PepGen intends to use the net proceeds to fund ongoing clinical development of its product candidate, plus working capital and general corporate purposes. Leerink Partners, Stifel and Guggenheim Securities are joint bookrunning managers. The offering depends on market conditions, so its timing and final size are not assured.

why it matters

For shareholders, the offering means possible dilution: new shares increase the number outstanding, which typically weighs on the share price. For the company, it is a source of funds for its PGN-EDODM1 program, although completion of the deal is not yet certain.

market impact

Акции PepGen: новые бумаги могут размыть долю текущих акционеров — давление на котировки

• ▼Акции PepGen pressure down — размещение увеличит число акций в обращении, что давит на котировки

tags

instruments