NEW YORK (GenomeWeb News) – Illumina has filed a shelf registration with the US Securities and Exchange Commission for a proposed public offering of 3.5 million shares of common stock, the firm said today.
San Diego-based Illumina said that the underwriter would be granted the right to purchase up to an additional 525,000 shares as part of the offering. All of the shares would be offered by Illumina. Goldman, Sachs is acting as sole manager of the offering.
The firm did not say when it expects to launch the offering. Based on its closing price of $92.74 on Friday, Illumina expects net proceeds of around $316 million. If the underwriter exercises the over-allotment option, net proceeds would be roughly $363 million.
Illumina said in its SEC filing that it intends to use the proceeds from the offering to fund R&D efforts, expand its manufacturing capacity, and for working capital needs. It also said that it may use the money to acquire, license, or invest in other businesses, technologies, or products.
Adjusted for the 3.5 million shares that would be offered to the public, Illumina’s outstanding shares as of June 29 were 68,053,019.
A couple of weeks ago, Illumina said that its board of directors had approved a two-for-one stock split that will be effected in the form of a stock dividend. The firm said the split is subject to shareholders approving an increase in the number of authorized shares of Illumina’s common stock from 120 million to 500 million.
The same day that it announced the proposed stock split, Illumina reported a 66 percent increase in second-quarter revenues to $140.2 million. It also announced that day that it was acquiring Avantome, a privately held developer of low-cost, long read-length sequencing technology.
Illumina said today that its purchase of Avantome was completed on Aug.1.
The firm’s shares were down 2.5 percent at $90.46 in early Monday trade on the Nasdaq. They hit an all-time high $95.75 on July 28.