Flex Subsidiary Nextracker Prices Equity Offering
Portfolio Pulse from Shivani Kumaresan
Nextracker Inc has priced its underwritten offering of 14.2 million shares at $36.50 per share, a 2% discount to its closing price on June 28. The company plans to use the net proceeds to purchase an equivalent amount of Nextracker LLC common units from Yuma Inc, a subsidiary of Flex Ltd., and TPG Rise Flash L.P, an affiliate of TPG Inc. The offering is expected to close on July 3, 2023.
June 29, 2023 | 9:57 am
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NEGATIVE IMPACT
Nextracker has priced its equity offering at a 2% discount, which may put downward pressure on the stock in the short term.
The equity offering is priced at a discount to the current market price, which could lead to selling pressure and a potential decrease in the stock price in the short term.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEUTRAL IMPACT
Nextracker plans to use the proceeds from its equity offering to purchase common units from TPG Rise Flash, an affiliate of TPG Inc.
The news is indirectly related to TPG Inc as Nextracker plans to use the proceeds to purchase units from its affiliate. This could potentially increase the value of TPG Rise Flash but the direct impact on TPG Inc's stock is uncertain.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50