Why Granite Ridge Resources Stock Plummeted by 23% This Week
A secondary stock offering was the catalyst behind Granite Ridge Resources (NYSE: GRNT) hitting a dry patch this week. Following the pricing of the 7.1 million-share sale on Tuesday, the oil and gas company's shares went on to shed over 23% of their market value, according to data compiled by S&P Global Market Intelligence.
Granite announced that funds managed by Grey Rock Energy Management are selling that stock in an underwritten secondary offering. In addition to the 7.1 million common shares on the table, the issue's underwriters were granted a 30-day option to buy up to an additional total of nearly 1.07 million shares.
The issue was priced at $5 per share; the negative investor reaction was due to the fact that this was well under the $6-plus closing price of Granite Ridge stock on Monday.
Source Fool.com
