Vaxcyte Prices Stock, Warrants and $500M Convertible Note Offering
Vaxcyte is raising capital through concurrent public offerings of common stock, pre-funded warrants, and $500M in convertible senior notes due 2032.
Clinical-stage vaccine developer Vaxcyte, Inc. (Nasdaq: PCVX) announced Monday the pricing of concurrent underwritten public offerings spanning three securities: common stock, pre-funded warrants, and convertible senior notes, in a broad capital raise aimed at funding its pipeline development.
The San Carlos, California-based company priced 7,412,500 shares of common stock at $64.00 per share, alongside pre-funded warrants to purchase 400,000 additional shares at $63.999 per warrant. The pre-funded warrants carry an exercise price of $0.001 per share, a structure commonly used to allow institutional investors with ownership-cap constraints to participate in equity raises.
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Simultaneously, Vaxcyte priced $500 million in aggregate principal amount of 1.50% convertible senior notes maturing in 2032. The dual-track offering — equity and debt — reflects a strategy to diversify funding sources while minimizing immediate dilution from the debt portion, which converts to equity only under defined conditions.
Underwriters were granted 30-day over-allotment options on both tranches: up to 1,171,875 additional shares of common stock on the equity side, and up to $75 million in additional notes on the debt side. If fully exercised, those options would meaningfully expand the total capital raised beyond the base offering figures.
Vaxcyte, which focuses on novel vaccine candidates targeting serious bacterial infections, has relied on equity capital markets to finance its clinical programs given its pre-revenue stage. The scale of this offering underscores continued institutional appetite for late-preclinical and clinical-stage biotechnology issuers. Continue reading at GlobeNewswire - Mergers And Acquisitions.
