Jul. 16 at 9:19 PM
REGENXBIO announced plans for a
$100 million underwritten public offering of common stock, subject to market and other conditions. The gene therapy company also intends to grant the underwriters a 30-day option to purchase up to an additional 15% of the shares sold in the offering, potentially increasing the total amount raised if demand is strong.
Morgan Stanley, J.P. Morgan, Leerink Partners, and Mizuho are serving as joint book-running managers for the transaction. REGENXBIO emphasized that there can be no assurance regarding the timing, size, pricing, or completion of the offering.
Public stock offerings are typically viewed as dilutive for existing shareholders because they increase the number of outstanding shares, reducing current investors' ownership percentages. As a result, such announcements often pressure share prices in the short term, although companies frequently use the proceeds to fund research and development, clinical programs.
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