- The stock price of Zai Lab Limited (NASDAQ:ZLAB) fell by over 5% pre-market. This is why it happened.
The stock price of Zai Lab Limited (NASDAQ:ZLAB) fell by over 5% pre-market. Investors are responding negatively to the company announcing that it has commenced an underwritten public offering of $750 million of American depositary shares (“ADSs”), each representing one ordinary share of the company.
All of the ADSs will be offered by Zai Lab. And Zai Lab expects to grant the underwriters a 30-day option to purchase additional ADSs. Investors have an option to receive ordinary shares of the company in lieu of ADSs in this offering only. And such an option will not be available to purchasers of the additional ADSs.
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