Here's Why Twist Bioscience Stock Rose as Much as 14.8% Today

Shares of Twist Bioscience (NASDAQ: TWST) rose nearly 15% today after the company announced the pricing of a public offering of common stock. The DNA synthesis pioneer will issue up to 5.3 million shares at $28 apiece. The offering could bring in gross proceeds of up to $150 million.

A company's stock usually declines after the announcement of a public offering of common stock. The markets tend to adjust the share price lower to account for the dilution of existing shareholders, while keeping the market cap at about the same level. For example, the latest offering from Twist Bioscience will increase the number of shares outstanding by 15%, which is roughly the decline investors might have expected from today's news.

As of 11:00 a.m. EST, the small-cap stock had settled to a 13.5% gain.

Source Fool.com