First Data Prices Secondary Offering
First Data shares took a step back on Thursday after the company announced the pricing of its secondary offering.
First Data Corp. (NYSE: FDC) shares took a step back on Thursday after the company announced the pricing of its secondary offering. Some 85 million shares will be sold for $17.75 apiece, with an overallotment option for an additional 12.75 million shares. At this price, the entire offering is valued up to $1.735 billion.
Now seems to be the best time for FDC to strike for its secondary offering. Excluding Thursday’s move, FDC has outperformed the markets with the stock up about 30% year to date. Over the past 52 weeks, the stock was up closer to 34%.
The underwriters for the offering are Merrill Lynch, KKR, Credit Suisse, Deutsche Bank Securities, Goldman Sachs, HSBC, Keefe Bruyette & Woods, Stifel, KeyBanc Capital Markets, Mizuho Securities, Morgan Stanley, PNC Capital Markets, SunTrust Robinson Humphrey, Wells Fargo, Allen, BBVA and Citizens Capital Markets.
This company is a global leader in commerce-enabling technology, serving roughly 6 million business locations and 4,000 financial institutions in more than 100 countries around the world.
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In its largest market, the United States, FDC acquired approximately $1.9 trillion of payment volume, accounting for over 10% of United States gross domestic product (GDP) last year.
The sole selling stockholder in the offering is New Omaha Holdings, and all net proceeds from the offering will go toward New Omaha.
Shares of FDC were last seen down more than 2% at $18.00, with a consensus analyst price target of $20.52 and a 52-week range of $12.74 to $19.20.
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Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics. Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications. A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.
