Aveanna Prices 15M-Share Secondary Offering at $11.75, a 0.8% Discount
AVAH sits 100% above its 52-week low of $5.93.
Summary
Aveanna priced a secondary offering of 15 million shares at $11.75, a slight discount to the last close of $11.85. The offering is by existing shareholders, including affiliates of J.H. Whitney Equity Partners VII and certain current and former directors and officers of the company, so it does not dilute the company's share count, but it increases the public float and may pressure the stock near-term. Certain affiliates of J.H. Whitney Equity Partners VII granted the underwriter a 30-day option to purchase up to an additional 2.25 million shares. This follows strong Q2 results and an 18% share surge on August 13, as well as recent insider selling by 10% owners. The pricing is modestly negative for sentiment, but the size is manageable relative to the company's $2.8 billion market cap.
At the time of this announcement, AVAH was trading at $11.85 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2.8B. The 52-week trading range was $5.93 to $13.40. This news item was assessed with negative market sentiment and an importance score of 7 out of 10. Source: Reuters.