InvestorsObserver
×
News Home

Montrose Environmental Group, Inc. (MEG) Stock Drops After Announcing Pricing Of Upsized Public Offering

Wednesday, September 29, 2021 10:56 AM | Kyle Depontes

Mentioned in this article

Montrose Environmental Group, Inc. (MEG) Stock Drops After Announcing Pricing Of Upsized Public Offering

What is going on with MEG?

Montrose Environmental Group, Inc. (MEG) announced today the pricing of its previously announced underwritten public offering of 2,500,000 shares of common stock at a price of $62 per share. The offering was upsized from the previously announced 1,750,000 shares.

The company has also granted the underwriters a 30-day option to purchase up to an additional 375,000 shares of common stock.

Shares of MEG declined 3.7% to $61.31 as of Wednesday at 10:50 am.

What does this mean for Montrose Environmental?

Montrose's public offering will benefit the company by allowing for an injection of funds to an area of its choosing. Montrose stated that they plan to use the proceeds from the sale "for general corporate purposes, including funding acquisitions, working capital, capital expenditures such as investments in research, development and software, or the repayment of debt."

Although the public offering will provide funds for the company, the offering will ultimately lower the stock price as new shares are added to the existing amount. This dilutes the overall share price as earnings must be divided up among a larger number of shares.

J.P. Morgan, BofA Securities, and William Blair are acting as joint leading book-running managers and representatives of the underwriters for the offering. Stifel, Needham & Company, Capital One Securities, and BNP PARIBAS are also acting as joint book-running managers for the offering.

The offering is expected to close on October 1, 2021.

Long-Term Technical Rank - 98

MEG has a Long-Term Technical Rank of 98. Find out what this means to you and get the rest of the rankings on MEG!

Montrose Environmental Group Inc is an environmental services company. The firm's operating segments are Assessment, Permitting and Response, Measurement and Analysis, and Remediation and Reuse. Through its Assessment, Permitting, and Response segment, the company provides scientific advisory and consulting services to support environmental assessments, environmental emergency response, and environmental audits. Measurement and Analysis include test and analysis of air, water, and soil to determine concentrations of contaminants whereas, the Remediation and Reuse segment provide clients with engineering, design, implementation, operations and maintenance services, to treat contaminated water, remove contaminants from soil or create biogas from food or agricultural waste.

You May Also Like

Get the InvestorsObserver App

InvestorsObserver App
iOS App Android App