Why ADT Stock Is Sliding 13% Lower Today

ADT (NYSE:ADT) stock is taking a dive on Wednesday after revealing details about a secondary public offering of ADT stock.

ADT (ADT) home security sign sitting outside of a building

Source: JHVEPhoto/Shutterstock.com

Here’s what investors need to know about the secondary offering.

  • The offering has Apollo Global Management and its subsidiaries selling 43.5 million shares of ADT stock.
  • This offering represents 5.5% of all ADT shares.
  • The price of the offering has shares going for $10 each.
  • This offering also includes a 30-day option that allows underwriters to purchase an additional 6.5 million shares.
  • ADT notes that due to this offering coming from Apollo Global Management, it won’t receive any proceeds from it.
  • The offering is set to close this Friday.
  • Morgan Stanley, Goldman Sachs, Barclays and RBC Capital Markets are acting as the joint-book running managers for the offering.
  • Citigroup, Deutsche Bank Securities and Mizuho are the joint-book runners for the offering.
  • Apollo Global Securities is also acting as the co-manager of the offering.

It’s worth pointing out that this secondary offering has Apollo Global Management selling its shares for less than what the stock closed on Tuesday. ADT stock ended that day at $10.80 per share. The secondary offering price of $10 per share is 7.4% lower than that closing price. This is likely what has the stock falling today.

ADT stock was down 12.8% as of Wednesday afternoon but is up 42.7% since the start of the year as of yesterday’s close.

On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article.


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