PepGen Prices 25 Million Shares at $5 in $125 Million Offering

PepGen Inc. priced 25 million common shares at $5 each, setting terms for an offering expected to generate $125 million in gross proceeds for the clinical-stage biotech.

Gross proceeds are expected to total $125 million before underwriting discounts, commissions and offering expenses. The public offering price is $5 per share.

Underwriters have a 30-day option to purchase up to 3.75 million additional shares at the offering price, less discounts and commissions. That option equals 15% of the base share count.

PepGen plans to use net proceeds for clinical development, working capital and other general corporate purposes. The company expects the offering to close on or about Nov. 13, subject to customary closing conditions.

The pricing advances PepGen’s Nov. 10 proposal for a $125 million stock and warrant offering. That proposal included pre-funded warrants for some investors in place of common shares.