Why Talos Energy Stock Fell More Than 14% in Morning Trading Today
Shares of North American exploration and production company Talos Energy (NYSE: TALO) fell as much as 14% when trading got underway on Nov. 9. The big news came out after the bell on Nov. 8, when the company announced a large stock sale.
Secondary equity offerings are often viewed negatively by investors because they dilute current shareholders. However, there's a positive aspect to them, as well, given that the company ends up with cash that it can use to fund growth initiatives or to strengthen the balance sheet, among other things. Only it isn't actually Talos that's selling the shares here, it's shareholders. Affiliates of Apollo Global Management and Riverstone Holdings are selling 6 million shares with an underwriter option for another 900,000.
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Source Fool.com
