LSC Communications Inc (NYSE: LKSD)
LSC Communications is having an incredibly strong day in the market, which is interesting as they just announced a secondary offering. Nonetheless, the secondary caused excitement, sending the stock up and prompting our partners at Trade Ideas to alert us of the gains. At the moment (11:32), LKSD is trading at $23.49 per share after a gain of $2.66 per share or 12.77% thus far today.
LKSD Announces Secondary Offering
As mentioned above, LSC Communications is having an incredibly interesting start to the day today after announcing a secondary offering. The company said it would be selling 6,242,082 shares of common stock at a price of $20.25 per share. The company also informed investors that it has given underwirters at 30-day option to purchase up to an additional 936,420 shares at the secondary pricing.
The interesting part in all of this is that the stock is actually climbing. In general, secondary offerings cause concerns with regard to dilution, leading to declines in the stock’s value, but that’s not the case with LKSD. This shows that the market sees a need for the money and expects that the funds raised through the offering will lead to stronger operations and better results. While this is a rarity in the market, it’s always nice to see.
What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will be keeping a close eye on LKSD. In particular, we’re interested in learning more about the company’s plans with the money it is raising, and watching the company put the plan into action. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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[Image Courtesy of Pixabay]