Shares of Infrastructure and Energy Alternatives (NASDAQ: IEA) have gotten crushed today, down by 15% as of 12:15 p.m. EST, after the company priced a secondary stock offering. The deal priced at $16.75 per share, a significant discount compared to yesterday’s closing price of $21.86.
The company, which goes by IEA, is not issuing or selling any shares. Rather, a large existing shareholder is selling 8 million shares at the offering price. Total gross proceeds from the deal are expected to be roughly $134 million, and the underwriters will have a 30-day option to buy approximately 853,000 additional shares. The selling shareholder is Oaktree Capital (and affiliated funds). The infrastructure construction company will not receive any proceeds from the deal.