Dicot Pharma raises SEK 231M in oversubscribed rights issue
What's the deal? Swedish research company Dicot Pharma has raised approximately SEK 231M through a rights issue that was oversubscribed to roughly 134%. The original issue targeted SEK 210M, but strong demand prompted the company to carry out an additional directed issue of about SEK 21M to investors who missed out on full allocation.
A total of 207.2 million units were subscribed for with and without preferential rights, meaning no underwriting guarantees had to be called upon. After issuance costs and the offsetting of guarantee commissions, net proceeds are expected to reach approximately SEK 216M.
Why now? The capital is earmarked for Dicot's planned Phase 2b clinical study of LIB-01, its erectile dysfunction drug candidate, during the second half of 2026, as well as preparations for Phase 3 trials.
What could go wrong? The fundraise comes with significant dilution. Through the rights issue, the directed issue, and a separate issue to underwriters who opted for compensation in units, the number of shares will increase by approximately 1.46 billion — amounting to about 42.1% dilution for existing shareholders.
If all warrants attached to the units are fully exercised, Dicot could raise up to an additional SEK 91M, but total dilution would climb to roughly 47.6%.
The board also resolved on a directed issue of approximately SEK 17M to underwriters, with the cash portion of the underwriting fee coming to about SEK 3M.
The signal: Oversubscription at 134% in a rights issue for a pre-Phase 2b pharma company suggests that investor appetite for early-stage life sciences bets in the Nordics remains resilient, even when dilution north of 42% is on the table. The real inflection point will come with Phase 2b data for LIB-01 in late 2026 — until then, the fundraise buys Dicot runway but leaves shareholders heavily exposed to binary clinical risk.
Read more: hk.marketscreener.com
