Shares of GrafTech International (NYSE: EAF) fell more than 10% at the open on Thursday after the company said its majority shareholder was distributing part of its holdings. That's going to increase the number of shares available for trading, which could put near-term pressure on the shares.
In a statement late Wednesday, GrafTech, a manufacturer of graphite electrodes used in steel production, said that a consortium led by Brookfield Business Partners (NYSE: BBU) has distributed a portion of its shares. The move increases the public float -- the number of shares available for trade -- by 26.8 million, meaning the company's float is now about 35% of shares outstanding from 25%.
Brookfield took GrafTech private in August 2015 and returned it to the public markets in April 2018 via an initial public offering (IPO). Since the IPO, the company has remained GrafTech's majority shareholder, and still holds a 65% ownership interest even after the latest distribution.