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Investing.com -- ADT Inc. (NYSE:ADT) stock dropped 3% after the security company announced a secondary public offering of 71 million shares held by Apollo Global Management (NYSE:APO) affiliates.
The offering, expected to close on July 28, 2025, will allow Apollo to reduce its stake in the company. Underwriters will have a 30-day option to purchase an additional 10.65 million shares from the selling stockholders. ADT will not receive any proceeds from the sale as it is not offering any shares directly.
Alongside the secondary offering, ADT has authorized the repurchase of approximately 11 million shares from the underwriters at the same price paid to the selling stockholders. This share repurchase will utilize the remaining capacity of the company’s existing $500 million share repurchase program.
The underwriters for the offering include Barclays (LON:BARC), Citigroup (NYSE:C), Morgan Stanley (NYSE:MS), Goldman Sachs, and BTIG, who will act as book-running managers. They may offer the shares through various transactions on the New York Stock Exchange, in the over-the-counter market, or through negotiated transactions.
The stock’s decline reflects typical market reaction to large secondary offerings, which often put downward pressure on share prices due to the increased supply of shares available in the market.
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