Why Bluebird Bio Shares Are Getting Crushed Wednesday
Portfolio Pulse from Adam Eckert
Bluebird Bio Inc (NASDAQ:BLUE) shares plummeted after announcing a $125 million public offering of common stock at $1.50 per share, significantly below the previous closing price. The offering includes 83.33 million shares with an option for underwriters to buy an additional 12.5 million shares. Proceeds will support commercialization and manufacturing of gene therapies ZYNTEGLO, SKYSONA, and LYFGENIA, as well as general corporate purposes. The stock dropped 49% to $1.24 on Wednesday morning.
December 20, 2023 | 2:26 pm
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Bluebird Bio's stock price is expected to face downward pressure in the short term due to the dilutive effect of the public offering priced significantly below the previous closing price.
The pricing of Bluebird Bio's public offering at $1.50 per share, which is a substantial discount to the market price, is likely to have a negative impact on the stock price due to dilution of existing shares. The significant drop in share price following the announcement indicates a strong negative market reaction.
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IMPORTANCE 90
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