According to a press release, the public stock offering includes $75 million worth of CRSR stock. These shares are being sold directly by the company. Also, there’s an offer for underwriters of the offering to acquire an additional $11.25 million worth of shares. Goldman Sachs is the sole book-running manager of this offering.
Adding to this news, Corsair Group (Cayman) has expressed interest in purchasing up to $40 million worth of CRSR stock in the offering. Corsair Group (Cayman) owns a majority stake in Corsair Gaming and is managed by affiliates of EagleTree Capital.
Why Is CRSR Stock Down on Offering News?
A public stock offering typically drops the value of a stock when it launches. That’s due to the new shares being distributed by the company and diluting the current amount of outstanding shares. Investors may also be unhappy about Corsair Gaming using this to increase Corsair Group (Cayman)’s stake in the company.
As a result of this news, shares of CRSR stock are seeing heavy trading today. This has some 1.6 million shares on the move as of this writing. For the record, the company’s daily average trading volume is about 595,000 shares.
CRSR stock is down 4.6% as of Tuesday morning.
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On the date of publication, William White did not hold (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.