Vaxcyte closes $544.3 million stock sale and $558.7 million note offering
The convertible notes carry an initial conversion price near $89.60 a share and mature in October 2032
Published
Vaxcyte closed two public offerings on Friday, raising about $544.3 million in net proceeds from the sale of 8,584,375 shares of common stock and pre-funded warrants at $64.00 per share. A second offering raised about $558.7 million in net proceeds from $575 million in 1.50% convertible senior notes due 2032.
The notes carry an initial conversion price of about $89.60 per share and mature on October 15, 2032. Underwriters exercised their overallotment options in full on both the stock and the notes, a sign demand ran ahead of the base deal size.
The combined raise, roughly $1.1 billion, gives Vaxcyte a deeper cash cushion to fund its vaccine programs through several clinical readouts without returning to capital markets soon, a cushion that matters for a clinical-stage company with no product revenue. The new shares and pre-funded warrants dilute existing holders immediately, while the notes only convert if the stock climbs well above its current level, pushing that dilution risk years into the future and leaving any refinancing decision well past the company's near-term trial milestones.