Why Coty Stock Is Trading Lower
Portfolio Pulse from Henry Khederian
Coty Inc has announced a shelf offering of 33 million shares, which will be made available to the public in the US and on a private placement basis outside of the US. The company intends to use the net proceeds from the offering primarily to retire principal amount of outstanding debt. The announcement has led to a 3.5% drop in Coty's share price.
September 26, 2023 | 2:57 pm
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Coty's share price has dropped by 3.5% following the announcement of a shelf offering of 33 million shares. The proceeds will be used to retire outstanding debt.
The announcement of a shelf offering often leads to a drop in share price as it dilutes the value of existing shares. In this case, Coty's share price has dropped by 3.5%. However, the company plans to use the proceeds to retire outstanding debt, which could improve its financial health in the long term.
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