Why Nuvalent (NUVL) Shares Are Down 6% Today
Portfolio Pulse from Henry Khederian
Nuvalent Inc (NASDAQ:NUVL) shares fell by 6.56% to $104.81 after the company announced a $500 million upsized public offering of 5 million common shares at $100 per share. The offering is expected to close on September 18, with underwriters having a 30-day option to purchase additional shares.
September 17, 2024 | 6:37 pm
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Nuvalent's stock price dropped 6.56% following the announcement of a $500 million upsized public offering. The offering price is set at $100 per share, which is below the current trading price, leading to a short-term negative impact on the stock.
The announcement of a public offering at a price lower than the current market price typically leads to a decrease in stock value due to dilution concerns. The offering price of $100 is below the current trading price of $104.81, causing the stock to drop by 6.56%.
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