GrafTech International Ltd (NYSE: EAF) is flying in the market today, and for good reason. The company announced that it would be withdrawing a secondary public offering, exciting investors and sending the stock for the top. Today, we’ll talk about:
- The news;
- what we’re seeing from EAF stock as a result; and
- what we’ll be watching for ahead.
EAF Announces Cancellation Of Offering
As mentioned above, GrafTech International is having a strong start to the trading session this morning after the company issued a press release.
In the press release, EAF announced the decision not to proceed with a previously announced public offering. The company said that the decision was made due to current market conditions.
This is incredible news for EAF shareholders. After all, the offering came with a steep discount and greatly diluted shares. Investors aren’t often fans of dilution. So, it’s not surprising that the stock is climbing today.
In the release, the company said that the decision was made by its majority stockholder. This stockholder is an affiliate of Brookfield Business Partners.
What We’re Seeing From The Stock
As investors, one of the first lessons that we learn is that it’s important to follow the news incredibly closely. After all, it’s the news that moves the market.
When it comes to GrafTech International, the news proved to be positive. After all, investors weren’t looking forward to a dilutive transaction. So, taking the transaction off of the table put smiles on the faces of shareholders.
As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:21), EAF is trading at $12.71 per share after a gain of $1.10 per share or 9.47% 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 EAF. While today’s news was positive, it is possible that the company will announce a dilutive offering down the line if market conditions fall back in line with what it wants to see. Nonetheless, for now, dilution is off of the table. We’ll continue to follow the news and bring it to you as it breaks!
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