RadNet drops on $200 mln share offering

RadNet

08/03/2024 13:03

** RadNet's  RDNT.O  shares down 7.1% at $45.13 premarket
after radiology center operator's overnight follow-on priced
    ** RDNT could snap 6-session winning streak, if losses hold
    ** Co late Thurs announced 4.55 mln shares at $44 for $200
mln raise
    ** Offering priced at 9.4% discount to last sale
    ** Co plans to use net offering proceeds for general
purposes, future acquisitions
    ** RadNet has ~68.5 mln shares outstanding for ~$3.3 bln
market cap, per LSEG
    ** Stock soared 28% over past 5 sessions to record highs
since co on Feb 29 posted Q4 top and bottom line beat, per LSEG
estimates
    ** Co also forecast 2024 total rev of $1.71-$1.77 bln
(comprising $1.65-$1.7 bln in its imaging center segment and
$60-$70 mln in newly formed digital health unit) vs $1.62 bln
rev in 2023
    ** Shares have doubled over the past 12 months through Thurs
close
    ** Jefferies and Raymond James acting as joint book-runners
for stock offering

 (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))