Landsea Homes Prices Stockholder Equity Offering At 6% Discount
Portfolio Pulse from Shivani Kumaresan
Landsea Homes Corp (NASDAQ:LSEA) has priced its underwritten secondary offering by Green Investment Alpha Ltd. at $9.75 per share, a 6% discount to the company’s closing price on Aug. 21, 2023. The company will also repurchase 800,000 of the initial number of shares sold at the public per share offering price, funded by cash on hand. The offering is expected to close on Aug. 24, 2023.
August 22, 2023 | 3:09 pm
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Landsea Homes' secondary offering is priced at a 6% discount, which may put downward pressure on the stock. The company's repurchase of 800,000 shares could provide some support.
The pricing of the secondary offering at a discount typically puts downward pressure on the stock as it indicates that the shares may be overvalued at the current market price. However, the company's repurchase of shares could provide some support to the stock price as it reduces the number of shares outstanding, thereby increasing the earnings per share.
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