PTLO - Portillo's (PTLO) stock drops over 8% after hours on 8M share offering

November, 14 2022 04:58 PM Portillo's Inc.

Portillo's ( NASDAQ: PTLO ) stock dropped 8.5% after hours on Monday as the firm announced an underwritten public offering of 8M class A shares.
Underwriters have a 30-day option to buy up to an additional 1.2M class A shares.
Net proceeds will be used to buy limited liability company units of PHD Group held by existing holders and repurchase class A stock from certain existing holders, each in a synthetic secondary deal.
As a result, Portillo's ( PTLO ) will not receive any proceeds from the offering.
One the offering closes, the total number of class A shares and class B stock will remain the same.
But the number of class A shares will increase by the same amount as the decrease in the number of class B shares.
Shares of Portillo's ( PTLO ) have fallen ~36% YTD.

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Portillo's (PTLO) stock drops over 8% after hours on 8M share offering