Why Weibo Shares Hit A New 52-Week Low Today
Portfolio Pulse from Henry Khederian
Weibo Corp (NASDAQ: WB) shares dropped 11.5% to a new 52-week low of $10.02 after announcing a $300 million convertible senior notes offering due in 2030 and a proposed offering of ADSs. The notes have a 1.375% interest rate and can be converted to ADSs or cash, with holders having redemption, repurchase, and conversion rights. The offering, which includes potential market activities like short positions and derivatives, is expected to close by December 4.
November 30, 2023 | 3:28 pm
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Weibo Corp's stock price fell to a new 52-week low following the announcement of a $300 million convertible senior notes offering and a proposed offering of ADSs.
The decline in Weibo's stock price is likely due to investor concerns over potential dilution from the convertible notes and ADS offerings. Convertible notes can be converted into additional shares, increasing the total number of shares outstanding and potentially diluting the value of existing shares. The announcement of such an offering often leads to a negative short-term reaction in the stock price.
CONFIDENCE 90
IMPORTANCE 85
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