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IDEAYA Announces Proposed Public Offering of Common Stock and Pre-Funded Warrants

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IDEAYA Biosciences (Nasdaq: IDYA) has announced a proposed public offering of up to $200 million in common stock and pre-funded warrants.

The company will also grant underwriters a 30-day option to purchase an additional $30 million in common stock.

The offering is subject to market conditions and other factors, with no assurance of completion or specific terms.

J.P. Morgan, Goldman Sachs, Jefferies, and RBC Capital Markets are acting as joint book-running managers.

This offering will be conducted under an automatically effective shelf registration statement filed with the SEC, and will be made available via a written prospectus and a prospectus supplement.

Positive
  • Potential to raise up to $230 million, including the underwriters' option.
  • Funds may support business growth, research and development, and other corporate purposes.
Negative
  • Potential shareholder dilution from the issuance of new shares.
  • Market conditions may impact the offering's success and terms.

IDEAYA's proposed public offering to raise up to $200 million through common stock and pre-funded warrants is a significant financial move. This capital infusion is typically aimed at funding ongoing research, clinical trials, or expanding operational capabilities. For retail investors, this type of offering can mean several things. On the positive side, it suggests that the company has identified potential growth opportunities and needs additional funds to capitalize on them. This could enhance the company's long-term value.

However, in the short term, issuing new shares can lead to dilution of existing shares. This means your percentage ownership in the company could decrease, potentially leading to a lower price per share. Moreover, the offering's success will depend on the market's perception of IDEAYA's future prospects.

Another important aspect is the involvement of major underwriters like J.P. Morgan and Goldman Sachs. Their participation adds a level of credibility to the offering, suggesting confidence in IDEAYA's strategy. For a retail investor, it is essential to consider both the potential dilution and the company's plans for the raised funds, which could ultimately drive future growth.

The decision to offer pre-funded warrants alongside common stock is noteworthy. Pre-funded warrants are typically offered to investors who are restricted from holding large percentages of the company's outstanding shares due to regulatory or internal guidelines. By including these warrants in addition to common stock, IDEAYA is potentially broadening its investor base to include those who may have otherwise been unable to participate in the offering.

This move could indicate a strategic effort to attract institutional investors, who often bring more stability and long-term commitment compared to retail investors. For individual investors, understanding this nuance is critical as it may reflect the company's effort to maintain long-term stability and access to capital.

Moreover, the 30-day option to purchase an additional $30 million in shares provides flexibility for IDEAYA and its underwriters to capitalize on favorable market conditions. This can be a positive sign, showing confidence in the potential demand for its shares.

SOUTH SAN FRANCISCO, Calif., July 9, 2024 /PRNewswire/ -- IDEAYA Biosciences, Inc. (Nasdaq:IDYA) today announced that it intends to offer and sell up to $200.0 million of shares of its common stock and, in lieu of common stock, to offer and sell to certain investors pre-funded warrants to purchase its common stock in an underwritten public offering. In addition, IDEAYA intends to grant the underwriters a 30-day option to purchase up to $30.0 million of shares of its common stock. The offering is subject to market and other conditions, and there can be no assurance as to whether or when the offering may be completed, or as to the actual size or terms of the offering.

J.P. Morgan, Goldman Sachs & Co. LLC, Jefferies and RBC Capital Markets are acting as joint book-running managers for the offering.

The securities described above are being offered by IDEAYA pursuant to an automatically effective shelf registration statement on Form S-3 that was previously filed with the U.S. Securities and Exchange Commission, or the SEC. The offering will be made only by means of a written prospectus and a prospectus supplement that form a part of the registration statement. A preliminary prospectus supplement and accompanying prospectus relating to and describing the terms of the offering will be filed with the SEC and will be available on the SEC's website. When available, copies of the preliminary prospectus supplement and the accompanying prospectus relating to these securities may also be obtained by request from: J.P. Morgan, by mail at J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by email at prospectus-eq_fi@jpmorganchase.com and postsalemanualrequests@broadridge.com; Goldman Sachs & Co. LLC by mail at Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, or by telephone at 866-471-2526, or by email at prospectus-ny@ny.email.gs.com; Jefferies, by mail at Jefferies LLC, Attention: Equity Syndicate Prospectus Department, 520 Madison Avenue, New York, NY 10022, or by telephone at 877-547-6340 or 877-821-7388, or by email at Prospectus_Department@Jefferies.com; or RBC Capital Markets, by mail at RBC Capital Markets, LLC, Attention: Equity Capital Markets, 200 Vesey Street, 8th Floor, New York, NY 10281, or by telephone at 877-822-4089, or by email at equityprospectus@rbccm.com.

This press release shall not constitute an offer to sell or a solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or other jurisdiction in which such offer, solicitation or sale would be unlawful prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

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About IDEAYA Biosciences

IDEAYA is a precision medicine oncology company committed to the discovery and development of targeted therapeutics for patient populations selected using molecular diagnostics. IDEAYA's approach integrates capabilities in identifying and validating translational biomarkers with drug discovery to select patient populations most likely to benefit from its targeted therapies. IDEAYA is applying its research and drug discovery capabilities to synthetic lethality – which represents an emerging class of precision medicine targets. 

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Legal Notice Regarding Forward-Looking Statements

This press release contains forward-looking statements. All statements other than statements of historical facts contained herein, including without limitation statements regarding the offer and sale of securities, the terms of the offering and ability to complete the offering, are forward-looking statements reflecting the current beliefs and expectations of management made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve substantial risks and uncertainties that could cause IDEAYA's preclinical and clinical development programs, future results, performance or achievements to differ significantly from those expressed or implied by the forward-looking statements. Such risks and uncertainties include, among others, risks and uncertainties related to market conditions and the satisfaction of closing conditions related to the proposed public offering, the uncertainties inherent in the drug development process, including IDEAYA's programs' early stage of development, the process of designing and conducting preclinical and clinical trials, serious adverse events, undesirable side effects or unexpected characteristics of drug development candidates, the regulatory approval processes, the timing of regulatory filings, the challenges associated with manufacturing drug products, IDEAYA's ability to successfully establish, protect and defend its intellectual property and other matters that could affect IDEAYA's ability to complete the offering and the sufficiency of existing cash to fund operations. IDEAYA undertakes no obligation to update or revise any forward-looking statements. For a further description of the risks and uncertainties that could cause actual results to differ from those expressed in these forward-looking statements, as well as risks relating to the business of IDEAYA in general, see IDEAYA's current and future filings with the SEC, including its Annual Report on Form 10-K filed on February 20, 2024, Quarterly Report on Form 10-Q filed on May 7, 2024 and preliminary prospectus supplement related to the proposed public offering.

Investor and Media Contact
IDEAYA Biosciences
Andres Ruiz Briseno
Senior Vice President, Head of Finance and Investor Relations
investor@ideayabio.com

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SOURCE IDEAYA Biosciences, Inc.

FAQ

What is the proposed offering by IDEAYA Biosciences (IDYA)?

IDEAYA Biosciences intends to offer and sell up to $200 million of common stock and pre-funded warrants in a public offering.

How much additional stock can underwriters purchase in IDEAYA's offering?

Underwriters have a 30-day option to purchase an additional $30 million of IDEAYA's common stock.

Who are the joint book-running managers for IDEAYA's offering?

J.P. Morgan, Goldman Sachs, Jefferies, and RBC Capital Markets are the joint book-running managers.

What conditions affect the completion of IDEAYA's offering?

The offering is subject to market and other conditions, with no assurance of completion or specific terms.

How will IDEAYA's offering be conducted?

The offering will be conducted under a shelf registration statement filed with the SEC, and will be made available via a written prospectus and a prospectus supplement.

IDEAYA Biosciences, Inc.

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