Jazz Secondary Weighs on Shares Near the High (JAZZ)

Jazz Pharmaceuticals plc (NASDAQ: JAZZ) was indicated to open a bit weak on Tuesday ahead of the open on news that the company has announced an underwritten public offering of 7,883,366 of its ordinary shares.  Unfortunately, all of the shares being sold are coming from existing holders so none of the proceeds will go back to Jazz’s coffers.  While the company was quick to point out in the press release that the total number of ordinary shares outstanding will not change as a result of the offering.  That doesn’t mean that the free float of shares will not change.

Book-runners are Barclays Capital and Citigroup Global Markets.  Jazz shares are down only about 3% at $49.72 right before the open on thin volume and the 52-week trading range is $23.50 to $53.10.  The pre-drop market capitalization was $2.9 billion versus the $390 million or so that will be raised by this offering.