Madison Square Garden Entertainment Filed For Offering Up To 7.15M Shares Of Common Stock By The Selling Shareholders; Madison Square Garden Entertainment Said Co Intends To Purchase ~$50M Of Class A Common Shares From The Underwriters
Portfolio Pulse from Charles Gross
Madison Square Garden Entertainment (MSGE) has filed for an offering of up to 7.15 million shares of common stock by the selling shareholders. The company also intends to purchase approximately $50 million of Class A common shares from the underwriters.
September 18, 2023 | 11:21 am
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MSGE's filing for an offering of up to 7.15 million shares could dilute existing shareholders' equity. However, the company's intention to buy back $50 million of Class A shares could offset this dilution and support the stock price.
The offering of new shares could dilute the value of existing shares, potentially leading to a decrease in the stock price. However, the company's plan to buy back $50 million of Class A shares could counteract this dilution, as it reduces the number of shares in circulation and can increase earnings per share, potentially supporting the stock price.
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