Stagwell staggers as co CEO, Goldman Sachs to cut stakes

Stagwell

09/03/2023 19:11

** Stagwell Inc's  STGW.O  shares drop 23.0% to $6.77 after
digital marketing firm launches secondary offering
    ** STGW on course for biggest one-day decline in 3 years
    ** Co late Weds said entities affiliated with The Stagwell
Group LLC and Goldman Sachs  GS.N  to sell 16 mln shares
 urn:newsml:reuters.com:*:nPn2zCWQna
    ** The Stagwell Group, controlled by CEO Mark Penn, selling
13 mln shares, while Goldman offloading 3 mln shares, per the
offering prospectus
    ** Co has ~292.5 mln total shares outstanding and ~127 mln
shares of free float, per Refinitiv data
    ** Through Weds close, stock had surged ~30% since co on Mar
2 reported higher rev and doubled size of its buyback program to
$250 mln
    ** About 1.65 mln shares have traded so far on Thurs, more
than double stock's 25-DMA volume, per Refinitiv
    ** Morgan Stanley and Goldman acting as joint lead
bookrunners for the offering, joined by SVB Securities and Wells
Fargo

 (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))