ORLANDO - Abacus Life, Inc. (NASDAQ: ABL), an alternative asset manager in the longevity and actuarial technology sector, today commenced an underwritten public offering of 10 million shares of common stock. The company also plans to offer the underwriters a 30-day option to buy up to an additional 1.5 million shares at the public offering price.
This move by Abacus is intended to generate capital for various corporate purposes, which include purchasing life settlement policies, supporting its business strategy, and general corporate uses such as working capital and potential repayment or refinancing of debt.
The completion of the offering is subject to market conditions, and there is no guarantee of its completion or the terms and size of the offering. The joint book-running managers for the offering are Piper Sandler & Co., TD Securities (USA) LLC, B. Riley Securities, Inc., and KKR Capital Markets LLC.
A registration statement for the proposed offering has been filed with the Securities and Exchange Commission (SEC) but has not yet been approved. Prospective investors will be able to obtain copies of the preliminary prospectus from the SEC's website or directly from the managing book-runners once it is available.
Abacus, known for its life insurance policy purchasing from consumers seeking liquidity, has managed over $5 billion in face value of policies since its inception in 2004. The company operates through its channels ABL Tech, ABL Wealth, and ABL Longevity Funds and is the only publicly traded life settlement company on the Nasdaq Exchange.
The company's forward-looking statements indicate that there can be no certainty regarding the completion of the offering or its future results. These statements are subject to risks and uncertainties, which include market demand, customer retention and growth management, among others.
The information in this article is based on a press release statement from Abacus Life.
In other recent news, Abacus Life, Inc. has appointed Elena Plesco as its new Chief Capital Officer. Plesco, a seasoned investment professional, brings over a decade of experience from her tenure at global investment firm KKR, where she co-led the Specialty Finance sector. During her career, she has been involved in a variety of mergers, acquisitions, and advisory transactions, particularly during her time at J.P. Morgan's investment banking division.
In her new role at Abacus Life, Plesco will oversee the company's capital management strategies and support its global expansion efforts. CEO Jay Jackson has expressed his enthusiasm for Plesco's appointment, citing her vast investing and financing experience as a crucial asset for the company's future growth.
Plesco has also expressed her eagerness to contribute to Abacus Life's long-term growth strategy. These recent developments reflect Abacus Life's commitment to strategic growth and global expansion.
InvestingPro Insights
As Abacus Life, Inc. (NASDAQ: ABL) embarks on its public offering, investors are closely monitoring the company's financial health and market performance. With a market capitalization of $681.35 million and a notable revenue growth of 72.06% in the last twelve months as of Q1 2024, Abacus shows a strong upward trajectory in its financials. This is further evidenced by a substantial quarterly revenue growth of 109.15% in Q1 2024, which suggests that the company's business model and operations are scaling effectively.
InvestingPro Tips indicate that analysts are optimistic about Abacus's profitability, predicting the company will be profitable this year. This aligns with the company's recent profitability over the past twelve months. Moreover, Abacus's liquid assets surpass its short-term obligations, providing a cushion and financial flexibility as it navigates through its corporate strategies, including the current share offering.
However, the company is trading at a high earnings multiple, with a P/E ratio of 677.03 based on adjusted earnings for the last twelve months as of Q1 2024. This might suggest that the stock is priced optimistically relative to earnings. Moreover, the stock has experienced a notable price uptick of 30.78% over the last six months, despite a recent decline in performance over the past month with a price total return of -12.96%.
For investors seeking a deeper dive into Abacus Life's financials and future prospects, there are additional InvestingPro Tips available. By utilizing the coupon code PRONEWS24, readers can get an additional 10% off a yearly or biyearly Pro and Pro+ subscription to access these valuable insights.
InvestingPro currently lists 9 additional tips for Abacus Life, which can be found at https://www.investing.com/pro/ABL. These tips will provide investors with a more comprehensive understanding of the company's financial position and market potential, aiding in informed investment decisions.
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