Karooooo (KARO) said Thursday a secondary public offering of 1.5 million ordinary shares held by Chief Executive Isaias Jose Calisto has been priced at $50 per share, for gross proceeds of around $75 million.
The offering, expected to close on Friday, includes a 30-day option for underwriters to buy an additional 225,000 shares from Calisto at the same price, the company said.
Following the offering, Calisto will retain 58% of Karooooo's outstanding shares, or 57.27% if the option is fully exercised, Karooooo said.
The company said it is not selling any shares and will not receive any proceeds.
Karooooo shares were down more than 14% in recent premarket activity Thursday.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.