Pike Electric Closes Secondary Stock Issue
Pike Electric has seen a shift in minority ownership following the completion of a secondary public offering of the company's common stock. Eight million shares formerly held by private equity firm Lindsay Goldberg were sold in the issue, at a price of $11.50 apiece. Also, the offering's underwriters exercised their option to buy just over 1 million additional shares from the seller.
In the press release announcing the news, Pike Electric stressed that it will receive no proceeds from the issue, as it was not the selling party.
The company also announced that it repurchased $40 million worth of its own stock from the selling shareholder. That equates to more than 3.66 million shares, for which the company paid $10.925 apiece. The company has subsequently cancelled those shares.
The joint book-running managers of the offering were JPMorgan Chase subsidiary J.P. Morgan, and Bank of America's Merrill Lynch.
At the moment, Pike Electric has more than 35 million shares outstanding.
The article Pike Electric Closes Secondary Stock Issue originally appeared on Fool.com.Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool owns shares of Bank of America and JPMorgan Chase. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.