Noranda Aluminum Holding Corporation (NYSE:NOR) Continues Weakness Post SPO Offering
Noranda Aluminum Holding Corporation (NYSE:NOR) stock has been under pressure to show its price potential ever since it reported pricing for its secondary common stock offerings on 12th March. The offer to sell close to 10 million shares of the common stock had raised the expectations of the investor community, which got abated once the pricing was announced.
Apollo Global Offloading Stock
The share sale is being held on behalf of certain institutional investors like Apollo Global Management LLC who have held the stock since the company went public. The underwriters of this exercise have been offered an 30 day option to buy additional 1.5 million shares in the event of a overallotment. The stock sale will not result in any new capital infusion into the company coffers.
Morgan Stanley Underwriting The Deal
The underwriting firm Morgan Stanley has indicated that the stock would be offered at the New York Stock Exchange through private placements to being with, and would progress to a across the counter sale for price points which are prevalent at that time, in the event of shares not being sold fully during private placement. The offering closed on yesterday, on 17th March.
Investors Stay Away From Stock
Post the announcement by the firm of the secondary share offer, the investment community has been shying away from the stock. During the past week, the stock saw its market valuation go down by a huge 16.2 percent, on the fears of a huge glut of shares of Noranda Aluminum Holding Corporation (NYSE:NOR) in the market. This had led to the stock shedding its 52 week high price points of $5.08 over the past few days of trading.
The investors in the basic aluminium manufacturing firm would be hoping that the investors negative sentiment is only temporary and would be investing into the stock over the next few weeks.