Allegro MicroSystems Launches Primary Offering Of 25M Shares Of Common Stock
Portfolio Pulse from Benzinga Newsdesk
Allegro MicroSystems (NASDAQ:ALGM) has announced a primary offering of 25 million shares of common stock, with an option for underwriters to purchase an additional 3.75 million shares. Proceeds will be used to repurchase shares from its majority shareholder, Sanken Electric Co., Ltd. The offering is subject to market conditions.
July 23, 2024 | 8:19 pm
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Allegro MicroSystems is launching a primary offering of 25 million shares, with an option for underwriters to purchase an additional 3.75 million shares. The proceeds will be used to repurchase shares from its majority shareholder, Sanken Electric Co., Ltd. The offering is subject to market conditions.
The primary offering of 25 million shares will likely dilute existing shareholders' equity, which could put downward pressure on the stock price in the short term. The use of proceeds to repurchase shares from the majority shareholder does not directly benefit public shareholders.
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