Core & Main Announces Upsizing Of Secondary Offering From 15M Class A Shares To 17M Class A Shares
Portfolio Pulse from Benzinga Newsdesk
Core & Main Inc. (NYSE:CNM) has upsized its secondary offering from 15 million to 17 million Class A shares. The underwriters have an option to buy an additional 2.55 million shares. Core & Main will not receive proceeds from the offering, which is set to close on January 10, 2024. Concurrently, Core & Main plans to repurchase 3.13 million Class A shares and 1.87 million partnership interests from the selling stockholders. J.P. Morgan and Citigroup are the joint lead book-running managers for the offering.
January 08, 2024 | 5:07 pm
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Core & Main has increased its secondary offering size and plans a concurrent share repurchase, but will not receive any proceeds from the offering.
The upsizing of the secondary offering indicates a potential dilution of existing shares, which could put downward pressure on the stock price. However, the concurrent share repurchase could offset some of this dilution. Since the company is not receiving any proceeds, the financial impact on Core & Main is neutral. The market's reaction will depend on how investors view the balance between these factors.
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