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Why Is SVB Financial (SIVB) Stock Down 38% Today?


  • SVB Financial (SIVB) stock is dropping on public offering news.
  • The company intends to sell $1.25 billion worth of SIVB stock.
  • It also announced a separate depositary share offering.
SIVB Stock - Why Is SVB Financial (SIVB) Stock Down 38% Today?

Source: Pavel Kapysh / Shutterstock.com

SVB Financial (NASDAQ:SIVB) stock is falling on Thursday after the company announced a proposed public stock offering.

According to a press release, SVB Financial intends to offer $1.25 billion worth of SIVB stock in the offering. The company also intends to offer $500 million of depositary shares as part of a separate offering.

In addition to this, SVB Financial is offering underwriters the option to acquire an additional $187.5 million of SIVB stock. They also can acquire $75 million worth of Preferred stock from the other offering. Goldman Sachs & Co. LLC and SVB Securities are the book-running managers for each offering.

SVB Financial also mentions that the consummation of each offering is not contingent upon the consummation of the other. It also says the funds from the offerings will be used for general corporate purposes.

SVB Financial Securities Sale

To go along with today’s news, SVB Financial mentions it completed the sale of its available-for-sale securities portfolio. That includes $21 billion of securities. This will result in the company seeing an after-tax loss of approximately $1.8 billion in Q1 2023.

Trading volume for SIVB stock today has some 840,000 shares changing hands as of this writing. For the record, that’s closing in on its daily average trading volume of about 877,000 shares. It also has SIVB stock down 38% this morning.

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

We’ve got all of the most recent stock news traders need to know about on Thursday! That includes why shares of Silvergate Capital (NYSE:SI), Biophytis (NASDAQ:BPTS), and Toro (NASDAQ:TORO) stock are moving today. All of that news is ready to go below!

More Thursday 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.

Article printed from InvestorPlace Media, https://investorplace.com/2023/03/why-is-svb-financial-sivb-stock-down-38-today/.

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