Legend Biotech Corporation reported plans for an underwritten public offering of American Depositary Shares that could raise $225 million, and the announcement coincided with a 4.7% decline in the company’s shares during Wednesday after-hours trading.
Under the terms disclosed by the company, each ADS represents two ordinary shares. Legend Biotech will offer all of the ADSs in the proposed transaction, and it has granted the underwriters a 30-day option to buy up to an additional 15% of the shares sold at the public offering price, less underwriting discounts and commissions.
The filing makes clear the offering is subject to market conditions. The company explicitly stated there is no assurance as to whether or when the offering may be completed, nor as to the actual size or final terms of any completed offering.
Underwriting and book-running managers
Morgan Stanley, Jefferies, Citigroup, and Deutsche Bank Securities are acting as joint book-running managers for the underwritten offering, according to the company’s announcement.
Business operations and product focus
Legend Biotech develops CARVYKTI, a CAR-T cell therapy for patients with relapsed or refractory multiple myeloma. The company markets that therapy in collaboration with Johnson & Johnson. Legend Biotech employs in excess of 3,000 people and conducts the bulk of its operations in the United States.
Market reaction and context provided by the company
The share price decline in after-hours trading followed the disclosure of the offering. The company’s statement on the offering reiterated that market conditions will influence whether the offering proceeds and that there is no certainty around completion, timing, or final terms.
Additional procedural details included the standard underwriting arrangement and the 30-day option for the underwriters to purchase up to 15% more of the ADSs sold at the offering price, with the customary deduction of underwriting discounts and commissions.
Beyond the facts presented in the announcement, the company provided no further commentary in the filing on timing, pricing, or the intended use of proceeds.