Prelude Therapeutics to offer 1.75M shares
WILMINGTON – The hot biotech startup Prelude Therapeutics announced Jan. 4 that it intends to offer 1.75 million shares of its common stock, according to regulatory filings.
The clinical-stage precision oncology company also reported that it expects to grant underwriters a 30-day option to purchase up to 262,500 additional shares at the public offering price.
The price point for the offering has yet to be established, as the company’s share price touched a record high of $88.94 on Christmas Eve but has fallen to $67.46 at close Jan. 4, closer to its 30-day average.
After the offering, Prelude will have about 45.4 million shares of common stock on the market, or 45.7 million if the underwriters’ option is exercised.
The company reportedly expected to raise about $117 million from the sale, using a Dec. 31 price point of $71.55, which may fall by the time shares are sold. It will use the proceeds to advance its three clinical trials for cancer drugs while also starting a fourth clinical trial this year, and furthering development of preclinical programs.
Morgan Stanley, Goldman Sachs & Co. LLC, BofA Securities and Barclays are acting as joint book-running managers for the offering.