ProFrac Holding Corp (NASDAQ:ACDC) saw its stock tumble 32% following the announcement of its public offering of Class A common stock priced at $4.00 per share, sharply below the prior closing price of $6.32.
The company is offering 18.75 million shares, expected to raise around $75 million in gross proceeds before underwriting fees and other expenses. Underwriters also have a 30-day option to purchase an additional $11.25 million in shares.
ProFrac plans to use the net proceeds to repay borrowings under its senior secured asset-based revolving credit facility, explore potential investments, and fund working capital and general corporate needs.
The offering, managed by J.P. Morgan Securities LLC and Piper Sandler & Co., is projected to close on or around August 14, 2025, pending customary closing conditions. The steep discount to the previous closing price likely contributed to the sharp decline, signaling potential dilution for existing shareholders.
ProFrac Holding Corp stock price
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