How will the $30 million private placement dilute existing shareholders and affect OABI’s earnings per share?

Dilution mechanics – The private placement will add 21,254,106 new common shares to the capital structure. OmniAb currently has roughly 55 million shares outstanding (the most recent public filings list a float in the low‑50 M range). After the transaction the share count will be about 76.3 million, meaning existing shareholders will own roughly 72 % of the company post‑deal (55 M ÷ 76.3 M) and will be diluted by ≈ 28 %. In EPS terms, if net income stays flat, earnings will be spread over ~38 % more shares, pulling the headline EPS down by a comparable margin.

Impact on valuation and trading outlook – The $30 million of net proceeds (gross $30 M × $1.40 per share, less placement fees) will bolster the balance sheet and fund ongoing clinical‑stage programs. In the short term the market will price in the dilution hit; the stock may dip toward the $1.40‑$1.45 level (the placement price) as investors adjust the forward‑PE and EPS estimates. Technically, OABI has been trading in a tight range just above $1.55; a breach below the $1.45–$1.40 support could trigger further downside, while a bounce off the $1.55–$1.60 resistance with volume could indicate that the capital raise is already priced in.

Actionable take‑away – Treat the placement as a near‑term catalyst for modest weakness (≈ 25–30 % EPS dilution) but keep a long‑run bullish bias if the cash is deployed efficiently into R&D pipelines that could lift future earnings. Consider a short‑term defensive position (e.g., a small put spread or a stop‑loss just below $1.40) while watching for a clear technical breakout above $1.60, which would signal that the market has absorbed the dilution and is refocusing on the company’s growth story.