- Board and senior management withdraw plans for secondary offering of shares due to market conditions
- Shares jumped 7% to $34.26 after hours
- Stock had fallen 9.3% in regular-session trading after Generac earlier unveiled plans for an offering
November 26 -- Generac
Holdings Inc. (GNRC) said its biggest shareholder and members of the company's
board and senior management have withdrawn plans for a secondary offering of
shares due to market conditions.
The generator
manufacturer's shares jumped 7% to $34.26 after hours. The stock had fallen
9.3% in regular-session trading after Generac earlier Monday unveiled plans for
an offering of about 11.5 million shares on behalf of the selling stockholders,
following a recent runup in price.
According to FactSet,
CCMP Capital Advisors LLC holds about 59%, or 39.9 million, of Generac's
shares. Generac, which is the leading maker of standby residential-backup
generators, had been billed as a big winner from the recent destruction caused
by superstorm Sandy.
After experiencing
strong demand following two major East Coast storms in 2011, the company's
stock took a boost in early November from the expectation of a fresh surge in
orders, as millions in the Northeast coped with the hardship of living without
electricity.
Generac's residential
generators, which run on natural gas or propane, are more expensive than
portable gasoline or diesel-powered units, but have the advantage of
immediately and automatically firing when power fails. They also run more
quietly than portable units, which have the added disadvantage of running on
fuel that can be scarce after a storm.
However, Generac's stock
has tended to slip in the past after rising sharply on natural disasters.
Through the close, the
stock has climbed 44% over the past three months.
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