ADT Announces Pricing Of Secondary Public Offering Of 65M Common Shares At $6.50/Share And Concurrent Share Repurchase
Portfolio Pulse from Benzinga Newsdesk
ADT has priced a secondary public offering of 65 million common shares at $6.50 each. Concurrently, ADT will repurchase 15 million shares from underwriters as part of its existing $350 million share repurchase program, without paying underwriting fees.
March 07, 2024 | 7:46 am
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ADT's secondary offering and share repurchase could signal confidence to investors, potentially stabilizing or boosting its stock price in the short term.
Secondary offerings often dilute share value, but the concurrent share repurchase signals to the market that the company believes its stock is undervalued. This can reassure investors and potentially lead to a short-term positive impact on the stock price. The lack of underwriting fees for the repurchased shares also indicates cost savings for ADT.
CONFIDENCE 75
IMPORTANCE 80
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