Why Immunovant Stock Is Skyrocketing This Week
Shares of Immunovant (NASDAQ: IMVT) were skyrocketing 75.1% higher this week as of 3:42 p.m. ET on Thursday, according to data provided by S&P Global Market Intelligence. Most of this big gain came after the company announced a public offering on Tuesday to sell 12.5 million shares.
Usually, biotech stocks fall after the announcement of stock offerings. That's because the transactions dilute the value of existing shares. Immunovant is issuing 12.5 million new shares, representing roughly 10.7% of its outstanding shares.
In theory, Immunovant stock should have dropped around by close to that same percentage. So why did the drugmaker's shares take off instead? Probably because investors liked two details about Immunovant's stock offering.
Source Fool.com
