NEW YORK – Veracyte on Friday priced an underwritten public offering of 7,432,433 shares of its common stock at a public offering price of $74 per share.
The South San Francisco-based firm expects about $550 million in gross proceeds from the offering, before deducting underwriting discounts, commissions, and offering expenses.
In addition, Veracyte has granted the underwriters a 30-day option to purchase up to an additional 1,114,864 shares of its common stock at the public offering price, less underwriting discounts and commissions.
Veracyte will use the net proceeds from the offering, along with existing cash, to finance its planned $600 million acquisition of Decipher Biosciences, announced earlier this week. The remainder will be used for working capital and other general corporate purposes, potentially including acquisitions or investments in complementary businesses, technologies, or other assets.
Goldman Sachs and SVB Leerink are acting as joint lead book-running managers for the offering. William Blair is acting as a book-running manager, while BTIG, Needham, and Lake Street Capital Markets are acting as co-managers.
The public offering was upsized from the previously announced amount of $400 million in shares of common stock.
Veracyte expects to close the offering around Feb. 9.
In early morning trading on the Nasdaq, Veracyte shares were down about 2 percent at $76.53.