ChargePoint (NYSE:CHPT) stock is losing power on Tuesday and it has to do with a recent stock offering announcement.
The drop comes after the company announced that certain shareholders are planning to launch a secondary stock offering. This offering will include 12 million shares with a 30-day option for underwriters to acquire an additional 1.8 million shares.
According to ChargePoint, the secondary offering only includes shares held by the selling stockholders. As such, the company won’t see any proceeds from the secondary offering of CHPT stock. Instead, all will the proceeds go to the shareholders selling their stock.
A price for the secondary offering hasn’t been included in today’s announcement. However, CHPT stock dropping is no surprise. Typically, any news about additional stock offerings will result in shares falling as investors worry about dilution of their own shares.
What we do know is who the underwriters of this offering are. That includes Bank of America (NYSE:BAC) Securities, Goldman Sachs (NYSE:GS), Oppenheimer (NYSE:OPY) acting as joint lead book-running managers. Morgan Stanley (NYSE:GS) is also serving as a book-running manager.
CHPT is seeing heavier-than-normal trading today alongside the secondary offering news. That has some 6 million shares traded as of this writing. This is above the company’s daily average trading volume of about 5.8 million shares.
CHPT stock was down 8.6% as of Tuesday afternoon.
Investors have plenty of other stock market stories to keep up with today.
InvestorPlace has them covered with all of the latest stock news from Tuesday. A few examples include Red Cat (NASDAQ:RCAT), Allied Healthcare Products (NASDAQ:AHPI), and Exela Technologies (NASDAQ:XELA) all heading higher today. You can learn all about that at the links below!
More Tuesday Stock Market News
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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