IPO stock Core & Main dropped Thursday after the company announced a secondary public offering of 15 million shares "by certain selling stockholders," according to a federal filing. The S&P 400 MidCap 400 stock has nine monthly gains so far in 2023.
Core & Main — a distributor of water, wastewater, storm drainage and fire protection products — reported Thursday that selling stockholders have granted a 30-day option to purchase up to an additional 2.25 million shares of CNM Class A common stock. Core & Main is not offering any shares of Class A common stock in the offering and will not receive any proceeds from the offering, according to the filing.
The company added that when the offering is completed it expects to repurchase 3.13 million shares from the selling stockholders and 1.87 million partnership interests of the company's subsidiary Core & Main Holdings.
Core & Main listed the Dec. 5 closing price of 36.46 as the "last reported sale price" in the Securities Exchange Commission (SEC) document.
IPO Stock: Core & Main Performance
Core & Main went public in July 2021. It rose to a January 2022 peak, then slipped into a consolidation.
On Thursday, the IPO stock dropped 2.2% to 36.40 during market action. On Wednesday, CNM shares gained 2% to 37.20, hitting new highs, after reporting mixed third-quarter earnings Tuesday.
Core & Main joined the S&P 400 MidCap on Nov. 13, leading to a more than 16% gain in November. The IPO stock has gained more than 92% on the year.
CNM missed third-quarter earnings estimates but topped revenue expectations early Tuesday. Core & Main EPS was 65 cents in Q3, flat compared to last year. Meanwhile, the company saw sales increase slightly to $1.83 billion. Analysts predict a 3% EPS gain in Q4 with revenue growing 4%.
This IPO stock has a 96 Composite Rating out of 99. CMN also has a 96 Relative Strength Rating. The EPS Rating for the IPO stock is 84.
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