Why Is Alset (AEI) Stock Down 32% Today?


  • Alset (AEI) is falling following public offering news.
  • The company priced shares at $2.20 each in a public offering.
  • That’s well below its prior closing price of $3.10 per share.
AEI Stock. A shot of a single family home with a green lawn and trees in the background.

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Alset (NASDAQ:AEI) stock is taking a beating on Monday after the company announced a proposed public stock offering.

The public offering was initially announced on Friday and has since been priced. This has the company expecting to raise $3.8 million in gross proceeds from the public stock offering. It intends to use this money for general working capital.

The Alset public stock offering includes 1.72 million shares of AEI stock. These shares are being sold for $2.20 per share. There’s also a 45-day option for underwriter Aegis Capital to acquire an additional 212,863 shares at the offering price.

AEI Stock Movement on Monday

Investors will note that stocks typically fall following a public offering announcement, as well as pricing. We’re seeing that today and it makes sense with the $2.20 price for the public offering. That’s well below the $3.10 per share that AEI stock closed out the day at on Friday.

It’s also worth keeping in mind that a public stock offering increases the number of outstanding shares. As such, that diminishes the stake current investors have in the company. This is another reason investors don’t react well to public stock offerings.

Today’s trading already has some 487,000 shares of AEI stock on the move this morning. For the record, the company’s daily average trading volume is about 47,000 shares. Also, AEI stock is down 32.2% as of Monday morning.

Investors looking for more of the latest stock market news are in the right place!

InvestorPlace is ready to go on Monday with all of the most recent stock market coverage! A few examples include what has shares of ReShape Lifesciences (NASDAQ:RSLS), Jiuzi Holdings (NASDAQ:JZXN) and Secoo Holding (NASDAQ:SECO) stock moving today. You can catch up on all that news at the links below!

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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.

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