REV Group, Inc. Announces Proposed Secondary Offering Of 12M Shares Of Common Stock And Concurrent Share Repurchase
Portfolio Pulse from Benzinga Newsdesk
REV Group, Inc. (NYSE:REVG) announced a proposed secondary offering of 12M shares by certain stockholders, with an option for underwriters to buy an additional 1.8M shares. REV Group will not sell any shares or receive proceeds from this offering. Instead, it plans to repurchase 6M shares from the underwriters using cash and borrowings. The offering's success is subject to market conditions, and the SEC has declared the registration statement effective. Baird, Goldman Sachs, and Morgan Stanley are the joint book-running managers.

February 13, 2024 | 9:40 pm
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REV Group plans a secondary offering of 12M shares by stockholders and intends to repurchase 6M shares, indicating a strategic move to manage its share structure without diluting current shareholders.
The secondary offering and subsequent repurchase by REV Group could signal confidence in the company's financial health and future prospects. However, the impact on the stock price is uncertain, as the offering could initially dilute share value, but the repurchase might offset this effect. The market's reaction will depend on investor perception of the company's strategy and its execution.
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