Magnolia Oil & Gas Tumbles 6.6% After Pricing $1B Stock Offering at $23.75
MGY is trading near its 52-week low of $21.065 (13% above the low) on elevated volume (2.7× avg).
Summary
Magnolia priced its 46.3 million share offering at $23.75, a slight discount to the prior close, sending shares down 6.6% in premarket trading. The offering, part of the financing for the $4.06 billion WildFire Energy acquisition announced Monday, includes a 6.95 million share underwriter option. The stock decline reflects dilution concerns and the market's digestion of the deal's funding structure. The offering is expected to close Wednesday, with proceeds earmarked for debt repayment and the acquisition.
At the time of this announcement, MGY was trading at $23.85 on NYSE in the Energy & Transportation sector, with a market capitalization of approximately $4.9B. The 52-week trading range was $21.07 to $32.76. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.