The stock market is ready to challenge new highs, and 2013 is off to a great start. One downside to market strength is that companies or their largest shareholders generally will start to sell shares to either lock in gains or to raise opportunistic expansion capital.
American Capital Agency Corp. (NASDAQ: AGNC) filed to sell 50 million shares of common stock worth some $1.6 billion at prevailing market price. The market cap as of Wednesday’s close was $11.1 billion.
CommonWealth REIT (NYSE: CWH) is seeing its share hit by more than 7% after selling 30 million shares at $19.00, versus a $22.51 close on Wednesday. The $570 million offering compares to a market cap of almost $1.9 billion before the sale.
DCP Midstream Partners L.P. (NYSE: DPM) is selling 10 million common units to repay debt and for general partnership purposes. This represents more than $420 million in proceeds, versus a prior market cap of almost $2.6 billion.
Del Frisco’s Restaurant Group Inc. (NASDAQ: DFRG) has not been public that long, but the company filed a proposed secondary public offering of 4,750,000 shares. All of the stock is being sold by the largest shareholder, named Lone Star Funds, so none of the money will help the company.
El Paso Pipeline Partners L.P. (NYSE: EPB) has filed to sell up to $500 million in common units. Its market cap before this was $9 billion. The sale is for general partnership purposes.
MarineMax Inc. (NYSE: HZO) has filed to raise up to $200 million in capital through a mixed shelf filing that could be common stock, preferred stock, debt, warrants or other securities. Its market cap is $298 million.
Medical Properties Trust Inc. (NYSE: MPW) is selling 9 million shares, which would be worth some $132 million at the prevailing market price, versus a market cap of just under $2 billion. The use of proceeds is to repay borrowings under its revolving credit facility and for general corporate purposes.
TriMas Corp. (NASDAQ: TRS) has filed to sell 1.5 million shares for existing shareholders. This would only be worth about $45 million versus a market cap of about $1.17 billion.