Zai Labs Jumps 11% on Pricing its $261.3 Million Additional Offering

In its third offering in the last few years, Zai Lab in total could raise $671.8 million.

Anthony Russo
    Jan 23, 2020 9:15 AM  PT
Zai Labs Jumps 11% on Pricing its $261.3 Million Additional Offering
author: Anthony Russo   

Zai Lab Ltd. (Nasdaq: ZLAB) has announced the pricing of its $261.3 million additional offering, sending its stock climbing nearly 11% to $53.67 per American depositary share in early trading.

The Shanghai-based biopharmaceutical company announced the offering of 5.5 million ADSs at $47.50 per ADS after Wednesday's close. 

Additonally, an investor in Zai Lab, QM11 Ltd., is offering 500,000 ADSs of the company.

The Underwriters are J.P. Morgan, Citigroup, Goldman Sachs & Co. LLC and SVB Leerink and Guggenheim Securities. The firms may exercise their 30-day over-allotment option and purchase up to an additional 800,000 ADSs from Zai Lab and 100,00 ADSs from QM11.

Assuming the underwriters do not exercise their option at the conclusion of the sale, QM11 would own 14% of Zai Lab's shares.

In May, Zai Lab said it expected to raise $200 million from its secondary offering. All together including its IPO, Zai Lab would raise approximately $671.8 million with the underwriters option.  

Founded in 2014, Zai lab develops and commercializes therapeutics to meet unmet medical needs in areas including oncology, infectious and autoimmune diseases. With approximately 700 employees, Zai Lab operates in China and around the world. 

Since its IPO, Zai Lab has far exceeded its issuance price of $18 per ADS.