Leonardo dips after parent carves stake

Leonardo DRS

17/11/2023 13:07

** U.S.-listed shares of defense co Leonardo  DRS.O  down
0.3% at $18.40 in light premarket volume after secondary
offering priced
    ** Leonardo  LDOF.MI  late Thurs announced it sold 18 mln
shares in the U.S. unit in offering priced at $17.75, cutting
stake by about 7% to roughly 73%
    ** Shares on Weds fell 11.2% to $18.46 after co launched
offering of 16.5 mln shares
    ** "With this transaction we will continue to consolidate
Leonardo DRS and maintain a significant industrial and
commercial presence in the US, the largest defense market in the
world," CEO Roberto Cingolani said in statement
    ** Morgan Stanley, BofA and J.P. Morgan leading the offering
    ** Through Thurs close, U.S.-listed DRS shares up 44% YTD.
Stock on Weds hit intra-day record high of $20.95
    ** Earlier this month, co posted Q3 adj EPS beat of 20
cents, per LSEG, and boosted its 2023 profit forecast to 70-72
cents/sh

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))