Erasca Prices Upsized $550M Stock Offering at $17.50, Shares Dip
ERAS has more than doubled off its 52-week low of $1.33 on light trading volume (0.4× avg).
Summary
Erasca priced its upsized public offering at $17.50 per share, a 2.2% discount to the last close of $17.90, raising approximately $550 million before the greenshoe. The deal was upsized to 31.43 million shares from the previously indicated $500 million, with the new shares representing roughly 18% of the pre-offering float. Underwriters have an option to purchase up to an additional 4.7 million shares. The offering follows positive Phase 1 data for ERAS-0015 and ongoing legal challenges, with proceeds strengthening the balance sheet ahead of pivotal trials. The discount and size may pressure the stock near-term.
At the time of this announcement, ERAS was trading at $17.90 on NASDAQ in the Life Sciences sector, with a market capitalization of approximately $5.6B. The 52-week trading range was $1.33 to $24.28. This news item was assessed with neutral market sentiment and an importance score of 8 out of 10. Source: Reuters.