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Investing.com -- DoubleDown Interactive Co., Ltd. (NASDAQ:DDI) stock tumbled 13.6% after the company announced the pricing of an underwritten secondary offering of 4,347,827 American Depositary Shares (ADSs) at $8.50 per ADS.
The offering is being conducted by selling shareholder STIC Special Situation Diamond Limited and consists entirely of existing shares, meaning no new shares will be issued. Each ADS represents 0.05 common share of DoubleDown, and the company will not receive any proceeds from the transaction.
The selling shareholder has also granted underwriters a 30-day option to purchase up to 652,173 additional ADSs at the same public offering price, less underwriting discounts and commissions.
Roth Capital Partners (WA:CPAP) is serving as Lead Bookrunning Manager for the offering, with Texas Capital Securities acting as Co-Bookrunning Manager. The transaction is expected to close around June 13, 2025, subject to customary closing conditions.
The significant stock decline reflects investor reaction to the secondary offering, which often puts downward pressure on share prices as it increases the supply of shares available in the market without changing company fundamentals.
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