IDEAYA Announces Pricing of Public Offering
IDEAYA Biosciences (Nasdaq: IDYA) has announced the pricing for its underwritten public offering of common stock and pre-funded warrants, totaling approximately $263 million in gross proceeds.
The offering includes 7,228,572 shares of common stock at $35.00 per share and 285,715 pre-funded warrants at $34.9999 per warrant. Each pre-funded warrant has an exercise price of $0.0001 per share.
Additionally, underwriters have a 30-day option to purchase up to an extra 1,127,142 shares at the public offering price. The offering is expected to close around July 11, 2024, subject to customary closing conditions.
J.P. Morgan, Goldman Sachs, Jefferies, and RBC Capital Markets are serving as joint book-running managers.
- IDEAYA expects to raise approximately $263 million in gross proceeds.
- The offering is priced at $35.00 per share, indicating strong market confidence.
- Additional option for underwriters to purchase 1,127,142 shares shows potential for increased capital.
- Shareholder dilution due to the issuance of 7,228,572 new shares.
- Potential further dilution if underwriters exercise the option to purchase additional shares.
Insights
The announcement of IDEAYA's public offering pricing is significant for investors. This capital-raising effort aims to generate approximately
The presence of major underwriters such as J.P. Morgan, Goldman Sachs and Jefferies lends credibility to the offering, reflecting confidence in IDEAYA's financial health and future prospects. However, investors should note the dilution effect, as issuing new shares increases the total share count, potentially diluting existing shareholders' stakes.
For retail investors, this move can be a double-edged sword. While the infusion of capital could fund growth initiatives or R&D, diluting shares might temporarily affect stock prices. It is important to consider how IDEAYA plans to deploy the raised funds and the expected return on these investments in the long run.
IDEAYA's decision to go through with this public offering aligns with trends seen in the biotech industry, where companies often raise capital through equity to fund extensive research and development. The substantial amount of nearly
It's also noteworthy that IDEAYA has structured the offering to include an additional 30-day option for underwriters to purchase up to 1,127,142 additional shares. This flexibility suggests a strategy to adjust to market demand dynamically. Investors might view this as a positive indicator of IDEAYA's adaptive market approach and confidence in its project's pipeline.
For investors, understanding the industry context is essential. Biotech firms often rely on external funding due to the high costs associated with drug development and clinical trials. This offering could be a proactive step to ensure financial stability and sustain long-term project development.
J.P. Morgan, Goldman Sachs & Co. LLC, Jefferies and RBC Capital Markets are acting as joint book-running managers for the offering.
The securities described above are being offered by IDEAYA pursuant to an automatically effective shelf registration statement on Form S-3 that was previously filed with the U.S. Securities and Exchange Commission, or the SEC. The offering is being made only by means of a written prospectus and prospectus supplement that form a part of the registration statement, copies of which may be obtained, when available, by request from: J.P. Morgan, by mail at J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue,
This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.
About IDEAYA Biosciences
IDEAYA is a precision medicine oncology company committed to the discovery and development of targeted therapeutics for patient populations selected using molecular diagnostics. IDEAYA's approach integrates capabilities in identifying and validating translational biomarkers with drug discovery to select patient populations most likely to benefit from its targeted therapies. IDEAYA is applying its research and drug discovery capabilities to synthetic lethality – which represents an emerging class of precision medicine targets.
Legal Notice Regarding Forward-Looking Statements
This press release contains forward-looking statements. All statements other than statements of historical facts contained herein, including without limitation statements regarding the expected closing of the public offering, are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties that could cause IDEAYA's preclinical and clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, risks and uncertainties related to market conditions and the satisfaction of closing conditions related to the proposed public offering, the uncertainties inherent in the drug development process, including IDEAYA's programs' early stage of development, the process of designing and conducting preclinical and clinical trials, serious adverse events, undesirable side effects or unexpected characteristics of drug development candidates the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, IDEAYA's ability to successfully establish, protect and defend its intellectual property and other matters that could affect the sufficiency of existing cash to fund operations. IDEAYA undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of IDEAYA in general, see IDEAYA's current and future filings with the SEC, including its Annual Report on Form 10-K filed on February 20, 2024, Quarterly Report on Form 10-Q filed on May 7, 2024 and preliminary prospectus supplement related to the proposed public offering.
Investor and Media Contact
IDEAYA Biosciences
Andres Ruiz Briseno
Senior Vice President, Head of Finance and Investor Relations
investor@ideayabio.com
View original content to download multimedia:https://www.prnewswire.com/news-releases/ideaya-announces-pricing-of-public-offering-302192746.html
SOURCE IDEAYA Biosciences, Inc.
FAQ
What is the purpose of IDEAYA Biosciences' recent public offering?
How many shares is IDEAYA Biosciences offering in its public offering?
What is the pricing of IDEAYA Biosciences' public offering?
When is IDEAYA Biosciences' public offering expected to close?
What is the impact of IDEAYA Biosciences' public offering on existing shareholders?
