(News Bulletin 247) – The biotechnology company Abivax posted one of the strongest rises on the Paris Stock Exchange on Thursday following the success of its capital increase of 130 million euros.
The title is currently climbing 6.5% after jumping almost 12% at the start of the session. At the same time, the Parisian market advanced by 0.2%.
The company announced yesterday evening that it had completed a reserved capital increase via the issue of 20 million new ordinary shares, representing 89.6% of its current capital, at a subscription price of 6.50 euros per share.
“The operation, which was carried out without a discount compared to the current stock market price and in which around fifteen American and European investors specialized in the sector participated, testifies to the strong appetite for value”, comments this morning Christophe Dombu, analyst at Degroof Petercam.
‘Abivax has achieved a feat by raising an amount which may seem astronomical in view of the sums usually raised by biotechs on Euronext’, he adds, recalling that the question of the financing of the company was one of the major market concerns.
The transaction, which has been oversubscribed, will allow Abivax to extend its cash position until the end of the second quarter of 2024.
The proceeds of the transaction are primarily to be used to fund the advancement of pivotal Phase 3 clinical studies of its candidate obefazimod in the treatment of ulcerative colitis.
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