Frequency Electronics falls after launching $100 mln share offering
FEIM•Shares fall after planned equity offering
Precision timing tech co Frequency Electronics shares fell 9.8% to $59.94 in extended trading after the company launched a planned equity offering.
- FEIM kicked off a $100 mln offering.
- The company is offering $62.5 mln of shares; Edenbrook Value Fund and Edenbrook Long Only Value Fund, affiliates of board member Jonathan Brolin, are selling the balance.
- Morgan Stanley is the lead bookrunner.
- FEIM intends to use net offering proceeds it receives to fund growth, including capex, working capital and other general purposes.
- FEIM shares closed down 5.9% at $66.46 on Tuesday, trimming the year-to-date gain to about 22%.
- The Uniondale-area, New York-based firm has about 9.9 mln shares outstanding for a market cap of roughly $660 mln.
