Moderna taps red hot stock demand with $1.34B offering

Gross proceeds of $1.34 billion topped the company's target

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Monday was a banner day for for the Massachusetts-based biotech company Moderna.

The company announced that an experimental vaccine against the coronavirus showed encouraging results in very early testing and later in the day announced the pricing for a share offering.

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Moderna announced the pricing of 17.6 million shares at $76.00 each, with underwriters having 30 days to purchase more than another 2.6 million shares.

Gross proceeds from the offering will be about $1.34 billion, topping the company's stated goal of $1.25 billion.

MODERNA'S EXPERIMENTAL CORONAVIRUS VACCINE SHOWS PROMISE IN EARLY-STAGE STUDY

The offering will close on May 21.

Morgan Stanley is acting as sole book-running manager for the offering.

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The news of the vaccine testing boosted the company's share price by more than 19 percent in Monday's session and in turn helped trigger an even wider equity rally.

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In the next phase of the study, led by the U.S. National Institutes of Health, researchers will try to determine which dose is best for a definitive experiment that they aim to start in July.