Why 4D Molecular Therapeutics (FDMT) Stock Is Diving
Portfolio Pulse from Henry Khederian
4D Molecular Therapeutics Inc (NASDAQ:FDMT) stock fell 11.7% to $28.33 after announcing an upsized underwritten public offering of over 6.5 million shares at $29.50 each, plus pre-funded warrants for about 3.6 million shares. The offering, managed by Goldman Sachs & Co. LLC, BofA Securities, Jefferies, and Barclays, aims to raise approximately $300 million before fees and is expected to close on February 9. FDMT does not pay dividends but engages in capital allocation programs.
February 07, 2024 | 7:56 pm
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4D Molecular Therapeutics' stock price dropped following the announcement of an upsized public offering, aiming to raise around $300 million.
The announcement of a significant public offering often leads to a short-term decrease in stock price due to the dilution of existing shares. FDMT's decision to upsell over 6.5 million shares, along with pre-funded warrants, at a price slightly above its current trading value, has led to a notable drop in its stock price. This is a common market reaction as investors adjust to the potential dilution of their holdings.
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