On Tuesday, Babylon Holdings stock (NYSE:BBLN), the stock of the next-generation healthcare firm, was far from healthy. The company’s stock (NYSE:BBLN) fell more than 15% on the day, owing mostly to a dilutive fresh share offering.
While this is nothing new, let’s look into what exactly precipitated this event.
So What Happened to Babylon Holdings Stock?
Before the market opened, Babylon updated investors on the problem, which was initially revealed on Monday. According to the digital healthcare services expert, it has collected $80 million in total subscriptions. These were made available to investors as part of the private investment in public equity (PIPE) round.
Babylon was selling subscriptions for more than $0.42 per ordinary corporation share. Overall, it is selling a little under 190 million shares, an increase from the almost 146 million disclosed on Monday.
Two of the customers are well-versed in Babylon holdings stock (NYSE:BBLN). The issue’s first subscribers included organizations linked with the company’s two major institutional investors, Swedish investment firms Kinnevik and VNV Global.
So, What Now?
Babylon stated that the proceeds from the issuance will be used to “fund the ongoing development of its digital-first platform and services for managing population health, working capital” and that the funds could also be used for “other general corporate purposes,” using boilerplate language used by many companies that have issued new stock.
This was not encouraging for investors, given that it now has fewer than 344 million shares outstanding, equating to a market valuation of slightly under $191 million. No one enjoys dilution, no matter how much potential their investment has.
Featured Image- Megapixl @ Timonschneider
Author Okoro Chinedu 
