Structure Therapeutics Announces Closing of Upsized Public Offering and Full Exercise of the Underwriters’ Option to Purchase Additional American Depositary Shares

Rhea-AI Summary

Structure Therapeutics (NASDAQ: GPCR) announced the closing of its upsized public offering of 10,427,017 American depositary shares (ADSs), each representing three ordinary shares, at $52.50 per ADS. The offering, which included the full exercise of the underwriters' option to purchase an additional 1,360,045 ADSs, generated gross proceeds of around $547.4 million. The proceeds are subject to underwriting discounts, commissions, and offering expenses. The offering was managed by Goldman Sachs, Morgan Stanley, Jefferies, Leerink Partners, Guggenheim Securities, and BMO Capital Markets. The registration statements for the securities became effective on June 5, 2024.

Positive

• Closed upsized public offering successfully.
• Total gross proceeds of approximately $547.4 million.
• Full exercise of underwriters' option to purchase additional ADSs.
• Managed by top-tier financial institutions: Goldman Sachs, Morgan Stanley, Jefferies, Leerink Partners, Guggenheim Securities, and BMO Capital Markets.
• Effective registration statements with SEC.

Negative

• Proceeds before deducting underwriting discounts, commissions, and offering expenses.
• Potential shareholder dilution due to the increased number of ADSs.

Insights

Financial Analyst

This public offering of $547.4 million by Structure Therapeutics is a significant event that could influence investor sentiment and the company's market position. The influx of capital is likely aimed at funding ongoing clinical trials and advancing the development of their oral small molecule therapeutics. For retail investors, the successful closing of this upsized offering and the full exercise of the underwriters’ option, highlights strong institutional confidence in the company's pipeline and future prospects.

From a financial perspective, the raised capital enhances the company's liquidity and provides a buffer against potential setbacks in the expensive and risk-intensive drug development process. Moreover, the involvement of high-profile underwriters like Goldman Sachs and Morgan Stanley further underscores the robustness of this offering.

However, investors should also be aware of the potential dilution of shares, as the issuance of new shares could dilute the value of existing shares. The long-term success of this capital raise hinges on the company's ability to effectively utilize the funds to achieve significant clinical milestones.

Market Research Analyst

The market's reaction to this public offering can provide insights into the perceived value and potential of Structure Therapeutics’ pipeline. The full exercise of the underwriters' option indicates strong demand for the company’s shares, which is a positive signal for market sentiment. This demand suggests that investors are optimistic about the company's future performance and the markets it targets—namely, metabolic and cardiopulmonary diseases.

For retail investors, it's important to note the strategic timing of this capital raise. The company likely aims to capitalize on favorable market conditions and recent positive developments in its clinical trials. Additionally, this capital influx might position Structure Therapeutics competitively to undertake new initiatives or partnerships that could further bolster its market standing.

In the short term, this offering could lead to volatility in the stock price as the market digests the news. Long-term, the focus will be on how effectively the company leverages this capital to drive innovation and achieve market penetration with their therapeutics.

SAN FRANCISCO, June 07, 2024 (GLOBE NEWSWIRE) -- Structure Therapeutics Inc. (NASDAQ: GPCR), a clinical-stage global biopharmaceutical company developing novel oral small molecule therapeutics for metabolic and cardiopulmonary diseases, today announced the closing of its previously announced upsized underwritten public offering of 10,427,017 American depositary shares (ADSs), each representing three ordinary shares, including the full exercise of the underwriters’ option to purchase up to 1,360,045 additional ADSs,  at a public offering price of $52.50 per ADS. The aggregate gross proceeds to Structure Therapeutics from the offering were approximately $547.4 million, before deducting underwriting discounts and commissions and offering expenses. All of the ADSs were offered by Structure Therapeutics.

Goldman Sachs & Co. LLC, Morgan Stanley, Jefferies, Leerink Partners, Guggenheim Securities and BMO Capital Markets acted as joint book-running managers for the offering.

Registration statements relating to these securities have been filed with the U.S. Securities and Exchange Commission (SEC) and became effective on June 5, 2024. Copies of the registration statements can be accessed through the SEC’s website at www.sec.gov. The offering was made only by means of a written prospectus. Copies of the final prospectus relating to the offering may be obtained from: Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at prospectus-ny@ny.email.gs.com; Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, NY 10014, by telephone at (866) 718-1649, or by email at prospectus@morganstanley.com; Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, by telephone at (877) 821-7388, or by email at Prospectus_Department@Jefferies.com; Leerink Partners LLC, Syndicate Department, 53 State Street, 40th Floor, Boston, MA 02109, by telephone at (800) 808-7525 ext. 6105, or by email at syndicate@leerink.com; Guggenheim Securities, LLC, Attention: Equity Syndicate Department, 330 Madison Avenue, 8th Floor, New York, NY 10017, by telephone at (212) 518-9544, or by email at GSEquityProspectusDelivery@guggenheimpartners.com; or BMO Capital Markets Corp., Attention: Equity Syndicate Department, 151 W 42nd Street, 32nd Floor, New York, NY 10036, by telephone at (800) 414-3627, or by email at bmoprospectus@bmo.com.

This press release shall not constitute an offer to sell, or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

About Structure Therapeutics
Structure Therapeutics is a science-driven clinical-stage biopharmaceutical company focused on discovering and developing innovative oral small molecule treatments for chronic metabolic and cardiopulmonary conditions with significant unmet medical needs. Utilizing its next generation structure-based drug discovery platform, the company has established a scientifically-driven, GPCR-targeted pipeline, featuring multiple wholly-owned proprietary clinical-stage small molecule compounds designed to surpass the limitations of traditional biologic and peptide therapies and be accessible to more patients around the world.

Investors:
Danielle Keatley
Structure Therapeutics Inc.
ir@structuretx.com

Media:
Dan Budwick
1AB
Dan@1abmedia.com

FAQ

What is the recent public offering announced by Structure Therapeutics (NASDAQ: GPCR)?

Structure Therapeutics announced the closing of an upsized public offering of 10,427,017 ADSs at $52.50 per ADS, generating approximately $547.4 million in gross proceeds.

How many additional ADSs were included in Structure Therapeutics' public offering due to the underwriters' option?

The underwriters exercised their option to purchase an additional 1,360,045 ADSs.

What is the aggregate gross proceeds from Structure Therapeutics' public offering?

The aggregate gross proceeds are approximately $547.4 million.

Which financial institutions managed Structure Therapeutics' recent public offering?

Goldman Sachs, Morgan Stanley, Jefferies, Leerink Partners, Guggenheim Securities, and BMO Capital Markets managed the offering.

When did the registration statements for Structure Therapeutics' public offering become effective?

The registration statements became effective on June 5, 2024.