Vaxcyte Stock (PCVX): Why The Price Went Down

By Amit Chowdhry ● Jan 14, 2022
  • The stock price of Vaxcyte Inc (NASDAQ: PCVX) fell by 9.5% in the most recent trading session. This is why it happened.

The stock price of Vaxcyte Inc (NASDAQ: PCVX) – a vaccine innovation company engineering high-fidelity vaccines to protect humankind from the consequences of bacterial diseases – fell by 9.5% in the most recent trading session. Investors responded negatively to Vaxcyte announcing the pricing of an underwritten public offering of common stock and pre-funded warrants.

Vaxcyte is selling 2.5 million shares of common stock and pre-funded warrants to purchase 2.5 million shares of common stock in the offering. The shares of common stock are being sold at a public offering price of $20 per share, and the pre-funded warrants are being sold at a public offering price of $19.999 per underlying share.

The aggregate gross proceeds to Vaxcyte from this offering are expected to be approximately $100 million, before deducting underwriting discounts and commissions and other estimated offering expenses, and excluding the exercise of any pre-funded warrants. And all shares of common stock and pre-funded warrants to be sold in the offering will be offered by Vaxcyte.

Vaxcyte also granted the underwriters a 30-day option to purchase up to an additional 750,000 shares of its common stock at the public offering price per share.

The offering is expected to close on January 18, 2022, subject to the satisfaction of customary closing conditions.

BofA Securities, Jefferies, and Evercore ISI are acting as joint book-running managers for the offering. Cantor is acting as lead manager for the offering. Needham & Company is acting as co-manager for the offering.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.