Deals
Companies Fold on High Valuations, Sparking Flood of Stock Sales
- Biggest run of secondary offerings in a year shows new shift
- Large holders join corporate issuers with outsized selling
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Corporate America and its biggest investors are finally accepting lower valuations in stock sales, sparking a sudden rebound secondary offerings after more than a year of nearly nonexistent share issuance in the US.
Over the past 10 days alone, US companies have raised more than $6 billion in equity sales, their biggest windfall in more than a year, according to data compiled by Bloomberg. The deals are providing long-awaited relief to balance sheets and a chance for existing holders to sell large stakes that were overdue for liquidation.