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ST. PAUL, Minn. - Solventum Corporation (NYSE:SOLV), currently valued at $12.5 billion, announced Wednesday the pricing of a secondary offering of 8.8 million shares of its common stock, which is expected to generate approximately $648 million in gross proceeds for 3M Company. According to InvestingPro data, the stock is trading at a relatively high earnings multiple of 33.6x and appears slightly overvalued based on its Fair Value assessment.
The offering, which is expected to close around August 15, involves only shares being sold by 3M as the selling shareholder. Solventum will not receive any proceeds from the transaction.
Goldman Sachs & Co. LLC and BofA Securities are serving as the underwriters for the offering, which is being made through Solventum’s shelf registration statement that became effective upon filing with the SEC on August 13.
The shares are being offered through a preliminary prospectus supplement filed with the SEC on the same day, along with the accompanying prospectus.
Solventum, which was previously spun off from 3M Company, operates in the healthcare sector, developing solutions at what the company describes as "the intersection of health, material and data science."
The transaction represents a significant reduction in 3M’s ownership stake in Solventum following their separation. The offering is subject to customary closing conditions.
This information is based on a press release statement from Solventum Corporation.
In other recent news, Solventum Corporation reported strong second-quarter earnings, with revenue reaching $2.2 billion, marking a 3.9% growth. The company’s earnings per share came in at $1.69, exceeding analyst expectations. Piper Sandler responded to these results by raising its price target for Solventum to $94, maintaining an Overweight rating due to the company’s solid performance. Additionally, Solventum announced that 3M Company plans to sell 8.8 million shares of Solventum common stock in a secondary offering. This transaction will be managed by Goldman Sachs & Co. LLC and BofA Securities, Inc., with Solventum not receiving any proceeds as the shares are owned by 3M. These developments highlight the ongoing financial activities surrounding Solventum.
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