UWMC - UWM launches 50M secondary shares offering plans to utilize partial stock repurchase program

UWM (NYSE:UWMC) trades 2% higher premarket after it announced that its controlling shareholder SFS plans to offer for sale 50M shares in an underwritten secondary offering. The company will not sell any shares and SFS will receive all proceeds. Along with offer pricing, the company plans to utilize $100M of its existing $300M stock repurchase program to purchase, through its subsidiary UWM,  an incremental $100M of SFS's equity interests in the company at a price per share equal to the price at which the underwriter will purchase the shares from SFS in the offering. The company plans to fund the concurrent buyback from existing cash on hand.

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UWM launches 50M secondary shares offering, plans to utilize partial stock repurchase program