VCI Global (NASDAQ:VCIG) stock is sliding lower on Friday as investors deal with the technology consulting services company launching a public offering for its shares.
The company filed a public offering today for 2.2 million shares of VCIG stock, with each share priced at $1.25. The shares also include Series A, and Series B warrants to acquire another 2.2 million shares of the stock each. Those warrants have an exercise price that matches the pricing of VCI Global shares in the offering.
VCI Global is expecting gross proceeds of $2.75 million from the public offering of its shares. The company will use these funds for initial public offering investments, strategic business acquisitions, financing initiatives, research and development, as well as team expansion.
How This Affects VCIG Stock Today
With this public offering comes an increase in the number of shares of VCIG on the market. That also means it dilutes the current stakes of shareholders in the company. This is one of the reasons the stock is falling on Friday.
The other is the price of VCIG stock in the offering. At $1.25 per share, it’s a significant discount over the company’s prior closing price of $1.56 per share. It makes sense that this pricing would drag down its shares today.
VCIG stock is down 34.6% as of Friday morning.
There are plenty of other stock market stories traders will want to read about below!
We have all of the hottest stock market news worth checking out on Friday! That includes all of the latest news concerning shares of Genius (NYSEMKT:GNS) stock, Charge Enterprises (NASDAQ:CRGE) stock and Volcon (NASDAQ:VLCN) stock today. You can find out all about these matters at the following links!
More Stock Market News for Friday
- Why Is Genius (GNS) Stock Down 40% Today?
- Why Is Charge Enterprises (CRGE) Stock Up 28% Today?
- Why Is Volcon (VLCN) Stock Up 59% Today?
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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.
