Skip to main content

Jefferies Financial Group Inc(JEF-N)

Today's Change
Real-Time Last Update Last Sale Cboe BZX Real-Time

Why Bicycle Therapeutics Stock Raced Ahead Today

Motley Fool - Thu Jul 13, 2023

What happened

Investors were more than willing to take a ride with Bicycle Therapeutics(NASDAQ: BCYC) on Thursday. The U.K.-based biotech saw the price of its American Depositary Shares (ADSes) surge more than 19% higher on the day; news about a new round of capital raising was the cause of the rally. By comparison, the S&P 500 index inched less than 0.9% forward that day.

So what

After market hours on Wednesday, Bicycle announced it was seeking to raise gross proceeds of around $200 million through a new ADS offering. It soon followed this up with the specifics on pricing and ADS count; just over 9.4 million of the securities will be sold at a price of $21.25 apiece. Investors have the option of purchasing nonvoting ordinary shares in lieu of ADSes.

These are clearly hot items, as Thursday's investor bull run powered the ADSes already on the market past the $26 level.

Bicycle said that the offering is anticipated to close on or about this coming Monday, July 17. The biotech has granted the issue's underwriters, led by Goldman Sachs, Jefferies, and Leerink Partners, a 30-day option to collectively purchase up to more than 1.4 million ADSes or ordinary shares at that $21.25 price.

Now what

Bicycle said it expects to reap just over $187 million in net proceeds to, sensibly, fund its investigational programs, in addition to other research and development activities. It will also utilize them for unspecified "general corporate purposes," plus certain types of financial instruments including U.S. or U.K. government debt obligations.

10 stocks we like better than Bicycle Therapeutics Plc
When our analyst team has a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

They just revealed what they believe are the ten best stocks for investors to buy right now… and Bicycle Therapeutics Plc wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of July 10, 2023

Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Goldman Sachs Group and Jefferies Financial Group. The Motley Fool has a disclosure policy.

Paid Post: Content produced by Motley Fool. The Globe and Mail was not involved, and material was not reviewed prior to publication.

More from The Globe