Mangoceuticals (NASDAQ:MGRX) stock is dropping on Friday after the men’s wellness products company launched a stock offering this morning.
That stock offering has the company selling 5 million shares of MGRX stock. However, while the stock offering is in effect, the pricing of the offering hasn’t been published yet.
It’s also worth mentioning that underwriters of the offering can acquire an additional 15% of MGRX stock within 45 days of the offering. Boustead Securities, LLC is acting as the sole underwriter of this offering.
How This Affects MGRX Stock
A public stock offering increases the number of outstanding shares that a stock has. That also dilutes the stakes of current shareholders in the company. This is one reason that public offerings can drop the price of a stock.
To go along with that, public offerings typically offer a significant discount over the prior closing price. In this case, MGRX stock closed out Thursday at 52 cents per share. While the price of this offering is unknown, it’s likely to be below that.
MGRX stock is down 32.7% as of Friday morning and is down 87% year-to-date as of Thursday’s close.
Investors who want to know even more about the most recent stock market stories are in the right place!
We have all of the hottest stock market coverage that investors will want to read about on Friday! That includes everything happening with shares of Aadi Bioscience (NASDAQ:AADI) stock, Getaround (NYSE:GETR) stock and Aurora Tech (NASDAQ:ATAK) stock. You can catch up on these matters at the following links!
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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.
