Billionaire-backed Chi-Med Prices Offering, Market Cap Drops to $700 Million
Chi-Med stock drops 20% on 377% higher volume than the average
Hutchison China MediTech Ltd. (Nasdaq: HCM) priced its $110 million offering at $25 per American depositary share on Wednesday.
The cancer drug developer, which is dual-listed on the AIM market of the London Stock Exchange and the Nasdaq Global Select Market, saw its Nasdaq stock price drop 13% on Wednesday from $29.50 to $25.69 on the offering announcement.
The steep delcine continued Thursday with ADSs in Chi-Med trading below the offering price at $23.56 apiece early Thursday, down 20% in two days.
BofA Securities Inc., Goldman Sachs (Asia) LLC and Morgan Stanley & Co. LLC are securing the deal. They may purchase up to an additional $16.5 million upon the offering.
Known in short as Chi-Med, Hutchison China focuses on the discovery, development and sales of therapeutics and immunotherapies in cancer and autoimmune diseases. Currently, it has eight cancer drug candidates in clinical studies.
Chi-Med is backed by billionaire Ka-shing Li.