MANCHESTER, N.H. - Allegro MicroSystems, Inc. (NASDAQ:ALGM), recognized for its power and sensing solutions, has initiated a public offering of 25 million shares of common stock. The company also plans to provide underwriters with a 30-day option to purchase up to an additional 3.75 million shares.
The proceeds from the offering are intended to fund the repurchase of shares from its majority shareholder, Sanken Electric Co., Ltd., aligning the purchase price with that offered to the underwriters in the equity offering. Allegro has stated that the completion and specifics of the offering are subject to prevailing market conditions, and there is no certainty regarding the final terms or timing.
Barclays, Morgan Stanley, and UBS Investment Bank are serving as the joint lead book-running managers for this offering. PJT Partners (NYSE:PJT) has been appointed as the financial advisor to Allegro.
This offering is part of an effective shelf registration statement previously filed with the Securities and Exchange Commission on July 23, 2024. The shares are available through a prospectus supplement and accompanying prospectus included in the registration statement.
Potential investors are advised to read the prospectus and related documents before investing, which can be obtained from the investment banks involved in the offering or via the SEC's website.
Allegro MicroSystems specializes in designing and marketing sensor integrated circuits and analog power ICs for automotive and industrial applications. Their products are aimed at vehicle electrification, automotive safety features, industrial automation, and energy-efficient solutions for data centers and renewable energy applications.
The announcement contains forward-looking statements, which are subject to risks, uncertainties, and other factors that could cause actual outcomes to differ from those projected. These factors are detailed in the related prospectus supplement, Allegro's annual report, and other SEC filings.
The information in this article is based on a press release statement from Allegro MicroSystems, Inc.
In other recent news, Allegro MicroSystems, a known name in power and sensing solutions, has initiated the syndication process for an incremental term loan. The primary purpose of this loan is to repurchase shares from its majority shareholder, Sanken Electric Co., Ltd. The execution of this loan and the share repurchase are dependent on market conditions and other factors, with no certainty regarding the completion or the terms of the transaction.
Morgan Stanley and Barclays have been chosen as the joint lead arrangers and book-runners for the loan syndication, while PJT Partners will serve as the financial advisor to Allegro. These are recent developments within the company, and the size of the loan will be determined by prevailing market conditions. It's important to note that the financial details and potential impact on Allegro's market position remain speculative until the transaction is finalized.
InvestingPro Insights
As Allegro MicroSystems, Inc. (NASDAQ:ALGM) embarks on its public offering of shares, investors are closely monitoring the company's financial health and market position. According to real-time data from InvestingPro, Allegro's market capitalization stands at $1.144 billion. Despite not being profitable over the last twelve months, the company has a strong return over the last three months, indicating a positive short-term investor sentiment.
Two InvestingPro Tips shed light on Allegro's current standing in the market. Firstly, analysts anticipate a sales decline in the current year, which may be a point of consideration for potential investors looking at the company's future revenue streams. Secondly, as a prominent player in the Semiconductors & Semiconductor Equipment industry, Allegro's strategic moves are significant for both the company and the sector at large.
InvestingPro Data further reveals that Allegro's revenue growth for the last twelve months as of Q4 2024 was 4.36%, with a gross profit margin of 36.94%. However, the company's quarterly revenue growth showed a decrease of 10.82% in Q4 2024. These metrics may influence investor decisions, especially in light of the recent share offering and repurchase plan.
For investors seeking a deeper analysis, additional InvestingPro Tips can provide valuable insights. There are more tips available on the platform, which could help in making an informed decision about Allegro's stock. To access these tips and take advantage of the comprehensive features of InvestingPro, use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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