Dutch Bros (NYSE:BROS) stock is taking a beating on Thursday after the coffee chain announced an underwritten public offering for its shares.
According to a press release, the company is selling up to $300 million worth of BROS stock in the offering. To go along with that, there’s a 30-day option for underwriters to acquire another $45 million worth of shares.
Investors wanting more details will have to wait for an additional announcement from Dutch Bros. The company hasn’t said how many shares will be included in the offering or what they will be priced at. What we do know is that the lead book-running managers for the offering are BofA Securities, J.P. Morgan Securities LLC and Jefferies LLC.
What This Means for BROS Stock
A public stock offering means that Dutch Bros plans to increase the total number of shares it has available on the market. Doing so dilutes the stakes of current investors, which is likely part of the reason the stock is falling today.
News of the public offering also has shares of BROS stock seeing strong trading on Thursday. As of this writing, more than 820,000 shares have changed hands. That’s closing in on the company’s daily average trading volume of about 858,000 shares.
BROS stock is down 5.6% as of Thursday morning.
Investors looking for even more of the most recent stock market stories today are in the right place!
InvestorPlace is home to all of the hottest stock market news traders need to know about on Thursday! A few examples include layoffs from ChargePoint (NYSE:CHPT), the latest GameStop (NYSE:GME) stock news and why NeuBase Therapeutics (NASDAQ:NBSE) stock is on the move today. All of that news is ready to go 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.
