Akebia Stock Drops 28% on Pricing of $50M Common Stock Offering
Akebia Therapeutics AKBA recently announced that it is floating a secondary issue of 25 million shares of its common stock to the public at an issue price of $2 per share, amounting to $50 million.
The company also granted an option to underwriters of the issue to purchase an additional 3.75 million shares at the same price.
The secondary offering is expected to close today.
Akebia’s shares fell more than 28% yesterday after the announcement. Though the issue does not significantly dilute the existing shareholder base, the issue price per share did not sit well with investors. The issue price was at a discount to the closing price on Thursday, with the stock closing at $2.04.
Year to date, shares of Akebia have outperformed…
