Avalo Therapeutics (AVTX) stock rocketed higher on Wednesday after the clinical-stage precision medicine company announced the details of a public offering. The company will sell 19,730,000 shares of AVTX stock and pre-funded warrants to purchase 1.4 million shares. The shares will be sold for $17.75 each and the pre-funded warrants will be sold for $17.749 each, with an exercise price of $0.001 per share.
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Avalo Therapeutics expects to raise $375 million from the public offering, not including any fees. However, that amount could increase. The company has granted underwriters the right to acquire an additional 3,169,500 shares of AVTX at the public offering price. Underwriters have 30 days to exercise this option.
Avalo Therapeutics also provided investors with insight into how it plans to use the funds from this public offering. The company expects to combine the money with cash, cash equivalents, and short-term investments to fund the ongoing clinical development of abdakibart, which includes its Phase 3 topline data release. The money may also be used for working capital and other general corporate purposes.
Avalo Therapeutics Stock Movement Today
Avalo Therapeutics stock was up 44.98% in premarket trading on Wednesday, but was still down 10.46% year-to-date. Even so, the stock has rallied 265.39% over the past 12 months.
With today’s news came heavy trading of AVTX stock, as more than 3.5 million shares changed hands. For comparison, the company’s three-month average daily trading volume was about 816,000 shares.
Is Avalo Therapeutics Stock a Buy, Sell, or Hold?
Turning to Wall Street, the analysts’ consensus rating for Avalo Therapeutics is Strong Buy, based on eight Buy ratings over the past three months. With that comes an average AVTX stock price target of $45, representing a potential 176.75% upside for the shares.
