GeneDx (NASDAQ:WGS) stock is taking a beating on Friday after the company revealed a proposed public stock offering.
According to a press release, GeneDx intends to raise $150 million from the offering. The company doesn’t say how many shares will be included in the public offering, or what price shares will be sold at.
What GeneDx does say is that all of the shares will be sold directly. Also, the company intends to allow underwriters to acquire additional shares in the offering. That would come in at 15% of the number of shares included in the offering. Jefferies is acting as the book-running manager and Cowen is the financial advisor for the offering.
GeneDx already has plans for the funds from the public WGS stock offering. The company intends to use the money for “general corporate purposes.” That includes as working capital, for repayment of debts and for strategic investments.
Why WGS Stock Is Falling
Investors don’t often react well to news of a proposed public stock offering. That makes sense, as offerings increase the amount of outstanding stock. This dilutes the stakes of current shareholders. These kinds of offerings are also often below the stock’s market price.
WGS stock is down 8.1% as of Friday morning.
There’s more recent stock market news worth diving into below!
InvestorPlace is home to all of the latest stock market coverage for Friday! That includes why shares of ContraFect (NASDAQ:CFRX), Akanda (NASDAQ:AKAN) and Redhill Biopharma (NASDAQ:RDHL) stock are moving today. You can catch up on all that news at the following links!
More Friday Stock Market News
- Why Is ContraFect (CFRX) Stock Down 23% Today?
- Why Is Akanda (AKAN) Stock Up 31% Today?
- Why Is Redhill Biopharma (RDHL) Stock Up 32% Today?
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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.