Eliminating the Share Overhang in Douglas

Douglas Dynamics, Inc. (NYSE: PLOW) is not a household name yet to many as the company has traded as a public stock for only about a year and a half.  After the close came word that the company will have a public offering of 1,996,479 shares of common stock. The shares being sold are by certain shareholders, which is said to include affiliates of the Aurora Capital Group.

This is one of those “cash out secondary offerings” and about all that investors can be glad about is that it will at least get ride of that much more of an overhang in the stock as the release noted, “Aurora Capital Group and its affiliates will cease to own any shares of the Company’s common stock.”  That being said, no shares are being sold by the company.

Robert W. Baird is the sole book-running manager for the offering.  No overallotment was mentioned.  Think snow-plows by the stock ticker… Douglas Dynamics designs, makes, and sells snow and ice control equipment for light trucks in North America.

Shares closed up 6.2% at $15.50 and the after-hours reaction has shares down 3.1% at $15.02 and the 52-week trading range is $11.38 to $16.96.