Sinovac’s Secondary Offering Will Help Fund Acquisitions
ChinaBio Today submits:
Sinovac Biotech (NSDQ: SVA) upped its secondary stock issue to 10 million shares (from 8.65 million) and priced them at $5.75 each, a 6% discount from Wednesday night’s closing price of $6.11. The company said it expects net proceeds of $53.8 million ($62 million if the underwriters purchase an additional 1.3 million shares for overallotments). Sinovac’s business focus is on the currently hot vaccine sector.
When Sinovac announced the secondary, one week ago on January 21, its shares were selling for $7.51. Even though the company sought to buoy its stock price by increasing its 2009 guidance at the same time as it announced the impending increase in shares, the stock dropped $1.40 or 19% in the ensuing week. Thursday, in mid-morning activity, it is down another 16 cents to $5.96.