Why Legend Biotech's Shares Jumped 11.8% on Wednesday
Shares of Legend Biotech (NASDAQ: LEGN) rose 11.8% on Wednesday. The company, which specializes in immunotherapy cell therapies, is up a little more than 3% for the year.
There are two reasons for the rise in the stock, both related to the Chinese biotech company's announcement this week that it plans to sell more than 8 million shares at a public offering price of $43 to raise $350 million. Normally, such a move turns off investors because it dilutes the value of the stock. And initially, that was the reaction, as the stock's closing price on Monday was $50.50, and the next day, it closed at $43.49.
However, sometimes investors think such a move is a positive sign if it means the company is raising more money to gear up for drug sales, and that seems to be the case here. Other investors may have piled in when they saw a potential deal.
Source Fool.com
