Starpharma Holdings (ASX:SPL) secured AU$32 million before costs through its fully underwritten 1-for-7.5 renounceable entitlement offer, with around 99% shareholder participation, including AU$5.4 million raised through the oversubscription facility, according to a Tuesday Australian bourse filing.

The company is expected to issue 56.1 million new shares on Tuesday, ranking equally with existing shares, per the filing.

Eligible shareholders will receive their full applications under the oversubscription facility, while proceeds from the sale of ineligible foreign shareholders' rights will be distributed on Friday, the filing said.

The proceeds will be used to fund the first-in-human and dose-escalation phases of a phase one study for a cancer treatment candidate, as well as advance additional oncology assets, the filing added.

The company's shares fell around 16% in recent Tuesday trade.