LPL Financial dips after $1.5 billion share sale to fund Commonwealth Financial acquisition

LPL Financial Holdings

01/04/2025 10:21

** Wealth management firm LPL Financial's LPLA.O shares fall 1.5% to $322.36 in premarket trading after follow-on offering priced

** LPLA late Monday sold ~4.69 million shares at $320 apiece in its stock offering to raise $1.5 billion

** Offering priced at a 2.2% discount to stock's last close

 ** LPLA stock closed down 2.9% at $327.14 on Monday after the firm unveiled the stock offering

** Morgan Stanley was the sole active book-running manager for the offering

** LPLA will use proceeds to fund a portion of its $2.7 billion acquisition of rival Commonwealth Financial Network announced on Monday

** 15 of 17 brokerages rate the stock "buy" or higher, 1"hold" and 1 "sell"; median PT $415.50 - data compiled by LSEG

** As of last close, LPLA stock flat YTD

(Reporting by Arasu Kannagi Basil in Bengaluru)

((ArasuKannagi.Basil@thomsonreuters.com;))