Savers Value Village shares fell more than 11% this week after majority owner Ares Management upsized a secondary stock offering at a discount. The offering was increased from 15 million to 20 million shares at $10.25 each, below the $12.29 close before the announcement, with underwriters granted an option to sell an additional 3 million shares. Savers will receive no proceeds and bought just over 1 million shares from the underwriters' allotment. Ares will retain majority control after the sale, and the company recently reported second-quarter net sales growth of over 7% and net income growth of 14%.
Savers Value Village, Inc.Secondary offering priced at $10.25, below recent close, causing shares to fall over 11%.
Ares Management LPAres upsized secondary offering at a discount, diluting its stake but retaining control.
