Target Hospitality Prices Upsized Secondary Offering at $18.50, Stock Drops 6.4%
TH has more than doubled off its 52-week low of $5.97.
Summary
Target Hospitality priced its secondary offering at $18.50 per share, upsized to 14 million shares from 13 million, with selling stockholders receiving about $259 million in gross proceeds. The stock fell 6.4% to $18.96 in premarket trading, reflecting dilution concerns. The company also plans to repurchase up to $30 million in shares from the underwriters at the offering price, using cash and credit facility borrowings. This follows the earlier announcement of the offering and the recent $660 million credit facility and hyperscaler contract. The offering is expected to close September 10.
At the time of this announcement, TH was trading at $19.02 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $2B. The 52-week trading range was $5.97 to $20.85. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Dow Jones Newswires.