Vaxcyte Launches Dual $500M Offerings in Stock and Convertible Notes
Vaxcyte is pursuing $1 billion in separate public offerings of equity and convertible debt to fund its vaccine pipeline.
Vaxcyte, Inc., a clinical-stage vaccine developer listed on Nasdaq under the ticker PCVX, announced Monday the simultaneous launch of two distinct underwritten public offerings totaling $1 billion, seeking to raise $500 million through common stock and pre-funded warrants while separately targeting another $500 million via convertible senior notes due 2032.
Both offerings are registered under the Securities Act of 1933 and will be sold exclusively by Vaxcyte, with the San Carlos, California-based company retaining the proceeds. The structure keeps the two transactions legally independent — neither offering's completion is contingent on the other closing successfully.
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To accommodate excess demand, Vaxcyte said it intends to grant underwriters a 30-day overallotment option on each deal: up to $75 million in additional common stock and up to $75 million in additional convertible notes. Combined, those options could push total gross proceeds to as much as $1.15 billion if fully exercised.
The dual-track capital raise signals an aggressive push by Vaxcyte to secure a substantial financial runway as it advances its vaccine candidates through clinical development. Clinical-stage biotechs frequently deploy parallel equity and debt strategies to diversify funding sources and reduce dilution risk relative to a single large equity offering. Terms and final sizing of both deals remain subject to market conditions, and the company cautioned that there is no guarantee either offering will be completed as described.
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