REV Group Prices Upsized Secondary Offering Of 16M Common Stock And Concurrent Share Repurchase At $16.50/Share
Portfolio Pulse from Benzinga Newsdesk
REV Group has announced an upsized secondary offering of 16 million shares at $16.50/share, with an option for underwriters to buy an additional 2.4 million shares. REV Group itself is not selling any shares and will not receive proceeds from the sale. The offering is expected to close around February 20, 2024. Additionally, REV Group plans to repurchase 8 million shares from the offering at approximately $15.76/share, using cash and borrowings. Baird, Goldman Sachs, Morgan Stanley, and D.A. Davidson & Co. are managing the offering.
February 15, 2024 | 7:46 am
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REV Group is involved in an upsized secondary offering and a concurrent share repurchase, indicating a strategic move to manage its share structure without diluting current shareholders.
The repurchase of shares by REV Group at a price slightly lower than the offering price could be seen as a positive signal to the market, indicating the company's belief in its own undervaluation. This action, combined with the fact that REV Group is not selling any of its own shares in the offering, suggests a strategic effort to enhance shareholder value without diluting equity. However, the impact of this move on the stock price will depend on market perception and the company's future financial performance.
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