Five Below Prices Secondary Offering, Shares Plummet
NEW YORK (TheStreet) - Five Below
Five Below said it priced 6 million shares at $36 a share. The offering price is a 5.7% discount to Five Below's closing share price on Tuesday.
The pricing of the common stock offering comes six days after the discount accessories, toy and craft retailer, known for selling products at $5 and below, canceled the original secondary offering of 8.6 million shares, citing poor market conditions.
The U.S. stock market had a rough week last week. The Dow Jones Industrial Average plunged more than 300 points on Thursday -- the most in 19 months -- on fears the Federal Reserve will start to reduce its bond-buying stimulus program. Fed Chairman Ben Bernanke's comments also lent credence to the notion that interest rates may be adjusted upward.
Shares of Five Below declined more than 4% over the past week.
The shares were being sold by the Philadelphia-based company's current shareholders, who included some of the company's executive management and affiliates of the board of directors, it said. The company was not expected to receive any proceeds from the sale. Underwriters, which include Goldman Sachs, Barclays Capital, Leucadia National's Jefferies, Credit Suisse and Deutsche Bank, have been granted a 30-day option to purchase an additional 900,000 shares of common stock.
-- Written by Laurie Kulikowski in New York.
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