What To Expect From Booz Allen Hamilton Holding Corporation (NYSE:BAH) Public Offering?

Posted by Beth Hart February 14, 2014 0 Comment 921 views


The $2.85 billion market capped management services firm Booz Allen Hamilton Holding Corporation (NYSE:BAH) after announcing the sale of 7.35 million shares of common stock, Class A shares on 12th class A shares are currently owned by Carlyle group and Barclays Capital Inc will officiate as the only underwriter for this shares offer.

Carlyle Group Books Profits

The firm which has branched out into “technology, and engineering services” from its core business of management consulting has priced the shares at $17.95 per share for the public offer. This price represents a discount on the 12th It is important to note here that post this public offering, private investment firm Carlyle will still own close to 53 percent of all the class A stock issued by Booz Allen Hamilton Holding Corporation (NYSE:BAH) till date. The timetable of the public offer has set 19th public offer. The proceeds from the sale are not going to be accrued to Booz Allen Hamilton Holding Corporation (NYSE:BAH), but will go directly into the coffers of the investment firm.

Analyst Upgrades

The sale reflects the high valuation that is being currently enjoyed by the stock of Booz Allen Hamilton Holding Corporation (NYSE:BAH) in the market. The investment firm seems to be liquidating part of its holding in the firm to monetize its gains over the past year, in which it has seen its holding in the firm go up by a impressive 67.98 percent. Analysts and rating agencies too have been impressed by the $240 million income generated by Booz Allen Hamilton Holding Corporation (NYSE:BAH) from $5.2 billion sales in the past 12 months. BofA/Merrill had recommended a Buy on the stock from its previous neutral rating on 6th February, followed it up with the pricing of the shares offer on 13th February. These February price of $18.28 per share at which it was trading. February as the close date for the February.



About Beth Hart

Beth is from New York. She has two master’s degrees and served as a lecturer in B-School. Her master’s degree is an MBA in Global Management from the University of Phoenix (2010). She has worked for small businesses, public agencies, and large corporations. She does write articles as a freelancer.

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