Dutch Bros drops after unveiling pricing of secondary offering

Dutch Bros

22/03/2024 09:52

** Dutch Bros shares  BROS.N  fall 5.4% to $33.69 premarket
after coffee chain announces pricing of secondary stock offering
    ** Stockholders associated with TSG Consumer Partners to
sell 8 mln shares of BROS by March 26
    ** Offer price is set at $34, nearly 4.2% discount to last
close 
    ** Morgan Stanley is sole underwriter for offering
    ** Stockholders to also grant underwriter a 30-day option to
purchase up to additional 1.2 mln shares 
    ** BROS to not receive any proceeds from sales of shares but
will bear a portion of the costs associated with sale
    ** On completion of offering, one of co's directors
nominated by TSG Consumer to resign and selling share holders to
designate one director to Dutch Bros's board
    ** BROS reported upbeat Q4 rev and 5% increase in same-store
sales on Feb. 21 
    ** Eight of 13 brokerages rate the stock "buy" or higher and
five rate it "hold", with a median PT of $34
    ** Up to last close, stock had risen 21.5% this year

 (Reporting by Johann M Cherian in Bengaluru)
 ((johann.mcherian@thomsonreuters.com;))