GNC Holdings, Inc. (NYSE: GNC) is seeing a very large share sale coming to market. The company filed after the close of trading on Thursday to sell up to 17 million shares of common stock by selling stockholders. None of the proceeds from this offering will go back to GNC.
The book-runners are listed as J.P. Morgan, Goldman Sachs, Deutsche Bank Securities, and Morgan Stanley. Co-managers are Barclays Capital, Credit Suisse, William Blair & Company, and BMO Capital Markets. The selling stockholders have granted the underwriters a 30-day option to purchase up to 2,550,000 additional shares at the offering price to cover overallotments. None of the overallotment proceeds, if used, will go back to GNC.
To show how large the offering, if the full shares are sold it would come to more than $630 million as of the filing date.
Keep in mind that the IPO in April of 2011 was 22.5 million shares and the offering was at $16.00 per share. Shares closed at $32.44 on Thursday and the stock is down over 2% at $31.55 in initial trading indications.
JON C. OGG
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