Gates Industrial Reveals Pricing Of Previously Announced Secondary Offering Of 15M Ordinary Shares By Certain Selling Stockholders Affiliated With Blackstone Inc.
Portfolio Pulse from Benzinga Newsdesk
Gates Industrial has announced the pricing details of a secondary offering of 15 million ordinary shares. These shares are being sold by stockholders affiliated with Blackstone Inc.
December 08, 2023 | 11:58 am
News sentiment analysis
Sort by:
Ascending
NEGATIVE IMPACT
Gates Industrial's secondary offering could lead to a dilution of existing shares, potentially impacting the stock price negatively in the short term.
Secondary offerings often lead to dilution of existing shares, which can result in downward pressure on the stock price as the market absorbs the additional supply. However, since the shares are being sold by existing stockholders and not the company itself, the proceeds will not go to Gates Industrial, which may mitigate some of the negative impact.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Blackstone Inc., as the selling stockholder in Gates Industrial's secondary offering, is not issuing new shares but selling existing ones, which should have a neutral impact on its stock.
Blackstone Inc. is selling existing shares of Gates Industrial, which does not affect the total number of shares outstanding for Blackstone itself. Therefore, this transaction is likely to have a neutral impact on Blackstone's stock price in the short term.
CONFIDENCE 70
IMPORTANCE 40
RELEVANCE 50