Westport Innovations (WPRT) Lower After Equity Offering, Traders Eye
Up)The company priced 5,500,000 common shares at a price of US$43.25 per share. Some are calling the pricing solid in light of the huge yearly run-up. Shares last traded at $44.10.
Westport has been a hot play on the uptake of natural gas engines.
Get immediate access to market moving news and alerts with StreetInsider.com Premium - FREE TRIAL!
You May Also Be Interested In
- Jefferies Says Westport Innovations (WPRT) Investor Day a Mixed Bag
- When Will Rosetta Genomics (ROSG) Crash From its 1346% Gain?
- Bill Gross Thinks China is the Real Elephant in the Room
Create E-mail Alert Related Categories
Trader TalkComments View All Comments
Dilution of Potential Dividend: 13%
If WPRT issued a dividend, then the 13% would be the dilution value that a shareholder would give up with a single share with the introduction of 6.325 million shares related to the outstanding shares.
Share Value $44 > $38.25
You had the right idea, Dexter, but some of your numbers were off. I think you were trying to say this.
New Common Shares: 5,500,000
Options (Morgan Stanley/Jeffries): 825,000
Add those two numbers and you get: 6,325,000.
Prior Shares Outstanding: 48,362,000
New Common Shares: 6,325,000
Dilution of Shares: 13.08%.
If you owned a stock today at $44, and it was diluted 13.08%, then your stock is now worth $5.75 less or $38.25 after WPRT introduced the new common shares.
Dilution of Stock Worth $5.13/share
WPRT has diluted shares approximately 12% with new common shares offering.
WPRT announced new common shares of 5 million into a pool of 50 million outstanding shares. This is an approximate dilution of 10% of the stock price.
In addition, bookrunners for the common shares offering have access to options of over 825,000 more shares and a 30-day period to exercise them.
For savvy investors, WPRT has diluted your stock by approximately 11.65% if the options are exercised.
On Tuesday, the stock opened about 44. 11.65% dilution of your stock is about $5.13 / share.
The stock you owned yesterday around $44 is now worth approximately $38.87.
Someone is making a lot of money off the little guy.
Correction Stock Price $48
Correction: Someone bought those shares at $8+ at 5:33pm on Tuesday...
Should be: Someone bought those shares at $48 at 5:33pm on Tuesday...
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
westport innovations
john irvine on Mar 26, 2012 03:03 PMMark as Spam
e-mail alerts, please