In a major financial development, Bluebird Bio Inc, a clinical-stage biotechnology company, made a noteworthy announcement today regarding the pricing of its underwritten public offering. The company revealed that it plans to offer 83,333,333 shares of its common stock to the public at a price of $1.50 per share. This pricing excludes underwriting discounts and commissions. Additionally, Bluebird Bio has granted the underwriters a 30-day option to acquire up to an additional 12,499,999 shares of its common stock at the same public offering price, taking into account underwriting discounts and commissions.
The total gross proceeds from this public offering are estimated to reach $125 million, before factoring in underwriting discounts and commissions, as well as offering expenses payable by Bluebird Bio. This projection assumes that the underwriters do not exercise their option to purchase additional shares of common stock. It is important to note that all shares included in this offering will be sold by Bluebird Bio.
Following this significant announcement, Bluebird Bio witnessed a considerable decline in its stock value. The stock opened at $1.30, a notable drop from its closing price of $2.43 in Tuesday’s trading.
At the time of this publication, bluebird bio Inc stock (BLUE) has witnessed a decline.
bluebird bio Inc
Current Price: $1.37
Change : -1.06
Change (%): (-43.53%)
Volume: 57.2M
Source: Tomorrow Events Market Data
Goldman Sachs & Co. LLC and J.P. Morgan Securities LLC have been appointed as joint book running managers for this offering, indicating their integral role in the process. Meanwhile, Raymond James & Associates, Inc. will serve as the co-manager for the offering.
Bluebird Bio has specified its intended use for the net proceeds generated from this offering. The company plans to allocate the funds to support the commercialization and manufacturing efforts related to its three approved gene therapies—ZYNTEGLO, SKYSONA, and LYFGENIA. Additionally, the net proceeds will be utilized to fund working capital and address other general corporate needs.
The public offering of Bluebird Bio is slated to conclude on or around December 22, 2023, pending the fulfillment of customary closing conditions. This development marks a significant move for Bluebird Bio as it aims to secure funding for its ongoing projects and advance its position in the biotechnology sector. Investors and industry analysts will be closely monitoring the company’s performance in the wake of this public offering.
