BioCentury
ARTICLE | Finance

Ebb & Flow

June 25, 2007 7:00 AM UTC

Stocks generally fall to account for dilution when companies propose follow-ons. But shares of Transgene (Euro-next:Transgene) rose both before and after the company's offering last week. Generalist investors from across the continent with little exposure to small and mid-cap stocks are behind the pop.

Two weeks ago, when the company said it planned to raise E75.7 million ($101.3 million) through the sale of 4.1 million shares at E18.25, the stock rose E2.23 to E19.98. Last week, the company raised E87 million ($116.4 million) through the sale of 4.8 million shares (including the overallotment), and the stock rose again, finishing the week up E0.31 to E20.29...