Shares fall after $100 mln equity offering is priced
Precision timing tech firm Frequency Electronics shares were down 9.4% to $60.20 before the bell Wednesday after a $100 mln equity offering was priced.
FEIM late Tuesday announced about 1.7 mln shares at $57.50, a 13.5% discount to the last sale.
The company sold about 1.1 mln shares; Edenbrook Capital, affiliated with board member Jonathan Brolin, offloaded the balance.
Frequency Electronics, based in the Uniondale area of New York, intends to use net offering proceeds it receives to fund growth, including capex, working capital and other general purposes.
Prior to the sale, activist investment firm Edenbrook owned about 1.9 mln of FEIM's roughly 9.9 mln shares outstanding, according to the prospectus.
Morgan Stanley was lead bookrunner for the offering, joined by Craig-Hallum as bookrunner.
At Tuesday's close, FEIM shares were up about 22% year to date.
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