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Investing.com -- Torrid Holdings Inc (NYSE:CURV) stock plunged 24.5% following the announcement of a 10 million share public offering by certain stockholders, with the company receiving none of the proceeds.
The plus-size women’s apparel retailer disclosed that selling stockholders will offer 10 million shares, with an option for underwriters to purchase an additional 1.5 million shares within 30 days. Torrid emphasized that it will not receive any proceeds from the stock sale, as the shares are being sold by existing investors rather than the company itself.
Separately, Torrid has agreed to repurchase $20 million of its common stock from Sycamore Partners at the same price underwriters will pay in the offering. This concurrent repurchase was approved by Torrid’s board and will be completed alongside the public offering, with repurchased shares to be held as treasury stock.
The offering is being managed by BofA Securities, Jefferies, and William Blair as joint lead book-running managers, with BTIG serving as book-running manager and Telsey Advisory Group as co-manager.
While the concurrent repurchase depends on the offering’s completion, the offering itself is not contingent on the repurchase transaction. The significant stock decline reflects investor concerns about the potential dilution and selling pressure from the substantial share offering.
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