Nuvalent (NASDAQ: NUVL) is making hay while the sun shines, but investors are feeling a bit of a sunburn. The clinical-stage biotech announced a relatively large secondary share issue Monday night, and the market reacted by trading down the stock sharply Tuesday. It fell by over 8%, on a day when the S 500 index was more or less stagnant.

All told, Nuvalent will float just over 5.3 million shares of its Class A common stock in an underwritten public offering. The shares are priced at $56.

The cancer-focused biotech said that the underwriting syndicate, which is led by companies including Wedbush Securities, BMO Capital Markets, and Piper Sandler, has been granted a 30-day option to purchase more stock. Collectively, those companies will be able to buy another 803,571 shares.

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Source Fool.com