Vivid Seats Announces Secondary Offering Of 18.5M Class A Common Stock
Portfolio Pulse from Benzinga Newsdesk
Vivid Seats Inc. (NASDAQ:SEAT) announced a secondary offering of 18.5 million shares of Class A common stock by Hoya Topco, LLC. The selling stockholder also plans to grant underwriters a 30-day option to purchase up to an additional 2.775 million shares. Vivid Seats will not receive any proceeds from this offering. Citigroup, Morgan Stanley, and BofA Securities are the joint book-running managers.
December 06, 2023 | 9:27 pm
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Vivid Seats Inc. is not receiving proceeds from the secondary offering of 18.5 million shares by Hoya Topco, LLC, which may dilute existing shareholders' equity.
Secondary offerings often lead to dilution of existing shareholders' equity, which can result in a negative short-term impact on the stock price. Although Vivid Seats is not directly benefiting financially from this offering, the increase in available shares typically puts downward pressure on the stock price due to supply and demand dynamics.
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