AbbVie Inc (NYSE: ABBV) is having an overwhelmingly strong start to the trading session in the pre-market hours this morning and for good reason. The company announced the preliminary results of its modified Dutch auction tender offer. Of course, the results proved to be positive, leading to excitement among investors and sending the stock screaming for the top. Today, we’ll talk about:
- The offer results;
- what we’re seeing from the stock as a result; and
- what we’ll be watching for ahead.
ABBV Announces Preliminary Results Of Dutch Auction Tender Offer
Recently, AbbVie announced that it would be buying back a big chunk of its own shares through a modified Dutch auction tender offer. Today, the stock is headed up as the company announced preliminary results of this offer. In a press release issued early this morning, the company said that, based on a preliminary count by Computershare Trust Company, a total of 75,743,313 shares of ABBV were properly tendered and not properly withdrawn at or below the purchase price of $105 per share. This figure includes 49,129,844 shares that were tendered by notice of guaranteed delivery. Based on these numbers, the company has been informed by the depositary that the preliminary proration factor for the tender offer is approximately 94.3%.
Under the terms and conditions of the tender offer, and based on the data provided through the preliminary count by the depositary, ABBV said that it expects to acquire 71.4 million shares of its common stock. In the release, the company said that this will come with an aggregate cost of approximately $7.5 billion at the price of $105 per share, not including fees associated with the offer.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that the news moves the market. In the case of AbbVie, the news proved to be overwhelmingly positive. After all, the company announced that it would buy back shares in a Dutch auction tender offer, and the news today shows that they are buying a ton of them. So, it’s no surprise that excited investors are sending the stock on a run for the top. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:17), ABBV is trading at $103.05 per share after a gain of $3.58 per share (3.60%) thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on ABBV. In particular, we’re interested in following the story surrounding the closing of this offer and learning more about the data once it is complete. We’ll also be watching the company’s continued growth as a leader in the biotechnology space. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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