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Sumitomo Pharma Plunges on Public Offering Announcement, Dilution Concerns Weigh on Sentiment
Sumitomo Pharma <4506> plunged sharply. After the market close on the 8th, the company announced it will conduct a public offering. Selling dominated trading on concerns over earnings per share dilution. The company plans to issue 51,304,400 new shares domestically and internationally, with an over-allotment option of up to 7,695,600 additional shares subject to demand conditions. The offering price will be determined on one of the days between the 20th and the 23rd. The total number of issued shares is expected to increase by up to 14.8%. Sumitomo Pharma will raise gross proceeds of up to \116.49 billion, to be allocated primarily to research and development ? centered on clinical trials for two oncology drugs, "encorafenib" and "nuvocertinib" ? as well as repayment of interest-bearing debt.
Source: MINKABU PRESS
*Translated by generative AI. Click here for the original article.
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