Reported Earlier, Merchants Bancorp Prices Common Stock Offering Of 2.4M Shares At $43/Share
Portfolio Pulse from Benzinga Newsdesk
Merchants Bancorp has priced its common stock offering of 2.4 million shares at $43 per share, expecting to raise approximately $98.04 million, net of underwriting discounts and commissions but before offering expenses. The underwriters also have a 30-day option to purchase up to an additional 360,000 shares at the offering price, less discounts and commissions.
May 14, 2024 | 7:46 am
News sentiment analysis
Sort by:
Ascending
NEUTRAL IMPACT
Merchants Bancorp's recent stock offering could dilute current shareholders but also provides significant capital for potential growth or debt reduction.
The pricing of the stock offering at $43 per share and the potential for raising approximately $98.04 million indicates a strategic move by Merchants Bancorp to strengthen its financial position. While the immediate effect might be dilutive to current shareholders, the capital raised could be used for growth initiatives or to reduce existing debt, which could have positive long-term effects. The option for underwriters to purchase additional shares adds a potential for further capital but also additional dilution.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100