Intellia Therapeutics (NASDAQ:NTLA) stock is falling hard on Thursday after the company announced a public stock offering.
This clinical-stage genome editing company is offering up 6.55 million shares of NTLA stock for a price of $45.80 per share. The offer also allows underwriters to acquire an additional 982,532 shares within 30 days.
According to the company, the public offering is expected to generate gross proceeds of $300 million. The shares are being sold directly by Intellia and Goldman Sachs (NYSE:GS) is acting as the sole underwriter. The offering will close on Dec. 2.
Intellia Therapeutics did not say what it plans to do with the funds its generates from this offering. However, it will likely continue business operations and fuel its development of CRISPR-based therapies.
Why NTLA Stock Is Falling
Investors typically don’t react well to public stock offerings for a couple of reasons. First off, they almost always have the company selling shares below their current value. NTLA stock is a perfect example; the public offering prices shares at $45.80 even though the stock closed trading at $51.46 yesterday.
The other issue investors have with public stock offerings is the introduction of new shares. These add to current outstanding shares issued by the company, which also dilutes shareholders.
All of this news combined has NTLA stock falling 10.3% as of Thursday morning.
Investors looking for more of the hottest stock market news will want to keep reading!
We’ve got all of the biggest stock stories traders need to know about on Thursday! A few examples include what has shares of Five Below (NASDAQ:FIVE) and Splunk (NASDAQ:SPLK) moving, as well as the biggest pre-market stock movers from this morning. You can check out all of that news at the following links!
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On the date of publication, William White did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.