89bio Plans Public Offering Of Common Stock And Pre-Funded Warrants; Commences Underwritten Offering Of $125M Of Shares
Portfolio Pulse from Benzinga Newsdesk
89bio, Inc. has announced its intention to conduct a public offering of common stock and pre-funded warrants. The company has commenced an underwritten offering aiming to raise $125 million through the sale of shares. Additionally, 89bio is expected to provide underwriters a 30-day option to purchase up to an additional $18.75 million of its common stock at the public offering price.
December 06, 2023 | 9:45 pm
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89bio, Inc. (ETNB) is raising capital through a public offering of common stock and pre-funded warrants, with the potential to expand the offering by $18.75 million if underwriters exercise their purchase option.
The announcement of a public offering can lead to a dilution of existing shares, which typically results in a short-term negative impact on the stock price. The size of the offering ($125 million with an additional $18.75 million option) is substantial, which could lead to significant dilution. Investors often view such offerings with caution, as it may indicate the company's need for substantial capital, potentially reflecting on its current financial health or future investment needs.
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