Allegro MicroSystems slips after stock offering priced

Sanken Electric

25/07/2024 14:56

** Allegro MicroSystems'  ALGM.O  shares down 0.4% at $24.59
early Thurs after stock offering priced
    ** Sensor integrated circuits provider late Weds announced
25 mln shares at $24 for $600 mln gross proceeds
    ** ALGM shares on Weds fell 10.7% to $24.70
    ** Manchester, N.H.-based Allegro to use net proceeds, along
with cash or loan facility borrowings, to repurchase ~38.8 mln
shares from majority shareholder Sanken Electric Co  6707.T 
    ** Post offering and repurchase, Japanese semiconductor firm
Sanken holds ~33% stake (approx 59.7 mln shares)
    ** With move on the session, ALGM shares off ~19% YTD and
off 50% over the past 12 months
    ** Barclays, Morgan Stanley and UBS leading the 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))