Posted on 1508
Upstart Holdings, Inc. (Nasdaq: UPST) announced today the pricing of its follow-on offering of its common stock at a price to the public of $120.00 per share. Upstart is offering 2,000,000 shares of its common stock. In addition, Upstart has granted the underwriters a 30-day option to purchase up to an additional 300,000 shares of common stock at the public offering price less underwriting discounts. The offering is expected to close on April 13, 2021, subject to customary closing conditions.
Upstart intends to use the net proceeds from this offering for general corporate purposes.
Goldman Sachs & Co. LLC, BofA Securities and Citigroup are acting as lead book-running managers for this offering. Jefferies and Barclays are also acting as book-running managers. JMP Securities and Piper Sandler are acting as co-managers for this offering.
Shares of
Upstart Holdings (NASDAQ:UPST), the artificial-intelligence powered, cloud-based lending platform, plummeted Wednesday to close the session down 12.6%. The company had only itself to blame after announcing plans that will cause stock dilution.
So what
After watching its stock price surge to six times in value in the four months since its December IPO, Upstart decided to cash in last night. The fintech announced it will sell at least 2 million new shares of common stock, and as many as 2.3 million.
Upstart said it will use the proceeds from the sale for general corporate purposes.
Now what
Upstart has not yet announced the shares sale price, so it s not yet clear how much those proceeds will be. Investors should be prepared to see a second wave of selling pressure, though, if Upstart sets the price too far below the approximately $126 level at which shares closed Wednesday.
Author Bio
Dan Caplinger has been a contract writer for the Motley Fool since 2006. As the Fool s Director of Investment Planning, Dan oversees much of the personal-finance and investment-planning content published daily on Fool.com. With a background as an estate-planning attorney and independent financial consultant, Dan s articles are based on more than 20 years of experience from all angles of the financial world.
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The stock market has been on a tear for more than a year now, and the
Nasdaq Composite (NASDAQINDEX:^IXIC) has benefited more than most other market benchmarks. Wednesday was a mixed day in the market, but as of 2:45 p.m. EDT, the Nasdaq managed to inch higher by about a tenth of a percent.
Author Bio
Howard grew up in Philadelphia watching the Philly sports teams struggle for championships. He has been investing since 1989 and been a Fool since 2001. Prior to joining The Fool as a contract writer in 2019, Howard worked in the steel business as an engineer for 28 years. When he isn’t writing, he is usually out for a run, or relaxing to the music of the Grateful Dead.
What happened
Shares of lending platform company
Upstart Holdings (NASDAQ:UPST) soared 96.3% in March, according to data provided by S&P Global Market Intelligence. Though there has been much volatility in the stock since the company announced its fourth-quarter and fiscal year 2020 earnings report on March 17, much of the month s gains came with the almost 90% jump after the earnings release.
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