Allegro Microsystems down after stock offering launch

Sanken Electric

23/07/2024 21:32

** Allegro MicroSystems'  ALGM.O  shares down 6.2% at $25.96
in extended trading as co looks to raise equity
    ** Sensor integrated circuits provider launches 25 mln share
offering
    ** Barclays, Morgan Stanley and UBS jt bookrunners
    ** Manchester, N.H.-based Allegro to use net proceeds along
with cash or loan facility borrowings to repurchase shares from
majority shareholder Sanken Electric Co  6707.T 
    ** Japanese semiconductor firm Sanken owns ~98.5 mln ALGM
shares, or ~50.83% stake, per LSEG data
    ** ALGM shares on Tues closed down 4.3% at $27.66. Stock has
lost 8.6% YTD and ~42% over the past 12 months

 (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))