BUZZ-U.S. Steel slides on $429 mln equity raise
18/06/2020 14:01 RSF
** United States Steel Corporation (
X.N) shares down 14.2% premarket at $8.05 after co prices follow-on
** X among the most actively traded stocks before the bell with volume approaching 2 mln shares
** Co sells 50 mln shares, raises $429 mln to strengthen its balance sheet, increase liquidity and for general corp purposes (
news)
** Offering prices at $8.58, 8.5% discount to stock's Weds close, bottom of $8.58-$8.80 range marketed by Morgan Stanley (
news)
** Deal size represents nearly ~30% of co's shares outstanding and about 3 days worth of trading volumes, per Refinitiv data
** On Weds, X slumped 10.4% after co's gloomy Q2 loss forecast (
news)
** YTD, stock has fallen ~18%
** Avg rating is "hold" with 8 brokerages neutral and the other 5 recommending selling the stock; median PT is $5.80 (Refinitiv data)
(Lance Tupper is a Reuters market analyst. The views expressed are his own)