AEVEX Prices 5.7M-Share Offering at $27, Triggers 14.7% Stock Drop
AVAV•AVEX stock plunged 14.7% from $32.44 to $27.66 after the company priced a 5.73 million-share public offering at $27.00 per share. The deal, which includes an additional 2.27 million shares from selling stockholders, effectively resets its near-term valuation and dilutes existing holders.
1. Offering Details
AEVEX initiated a public offering priced at $27.00 per share, issuing 5,726,157 new Class A common shares to raise capital and facilitating the sale of 2,273,843 additional shares by existing holders.
2. Stock Price Reaction
The stock declined sharply by 14.7% in one session, dropping from $32.44 to $27.66, compared with a 0.7% fall in the S&P 500 and smaller decreases among peers.
3. Valuation Reset
By setting the offering price below market, the company established a new benchmark valuation, compelling investors to revise downward their fair-value models and expectations for near-term upside.
4. Private Equity Exit
Madison Dearborn Partners’ funds are monetizing a significant stake through the secondary sale, raising investor concerns about future growth prospects and insider optimism.
