Core & Main Announces Secondary Offering of 15M Shares by Selling Stockholders
Portfolio Pulse from Benzinga Newsdesk
Core & Main Inc. (NYSE:CNM) has announced a secondary public offering of 15 million shares by certain selling stockholders, with an option for underwriters to purchase an additional 2.25 million shares. Core & Main will not receive any proceeds from the offering. Concurrently, Core & Main plans to repurchase 3.13 million shares of Class A common stock and 1.87 million partnership interests from the selling stockholders upon completion of the offering.
January 08, 2024 | 11:28 am
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Core & Main Inc. is conducting a secondary offering of 15 million shares, which will not benefit the company financially as it will not receive any proceeds. They also plan to repurchase shares concurrently with the offering.
Secondary offerings often lead to dilution of existing shares, which can negatively impact the stock price in the short term. However, the repurchase of shares could offset some of the dilutive effects. The lack of direct financial benefit to Core & Main from the offering and the potential dilution are likely to be viewed negatively by investors.
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