CPI Card slides on PE backer's deep-discounted share offload
PMTS•Shares fall after secondary offering pricing
Payments technology firm CPI Card Group's PMTS.O shares were down 16.9% to $22.40 premarket on Friday after a secondary offering was priced.
Background on the company and stock performance
Littleton, Colorado-based PMTS has about 11.5 million shares outstanding.
B. Riley Securities and D.A. Davidson were joint bookrunners for the offering.
Through Thursday, PMTS stock was up 42% over the past three months and about 84% year to date.
All four analysts covering the stock rate it "buy"; median price target is $33, ըստ LSEG data.
Parallel49-affiliated holders sell 2.3 million shares
PMTS announced holders affiliated with private equity firm Parallel49 Equity offloaded about 2.3 million shares at $21.50 for about $50.3 million.
The offering price represents a 20.2% discount to the stock's last close.
If the full overallotment is exercised, Parallel49's holdings would be divested, per the prospectus.
Family office Tricor Pacific Capital, an affiliate of an indirect equity holder of Parallel49, had indicated interest in purchasing approximately 550,000 shares in the offering.
