BUZZ-InnovAge shares fall as private equity investors reduce holdings in $92.5 million secondary offering

September 23 - ** The stock price of elderly care service provider InnovAge Holding (INNV.O) dropped 12.5% to $9.32 in pre-market trading on Wednesday, hitting a three-month low after the company completed a $92.5 million secondary offering.

** The Colorado Denver-based listed company announced on Tuesday evening (link) that funds affiliated with private equity firms Apax Partners and Welsh, Carson, Anderson & Stowe sold 10 million shares at a price of $9.25 per share.

** The offering price represents a 13.1% discount to the stock's closing price in the previous trading day.

** Barclays, Goldman Sachs, and Wells Fargo acted as joint lead underwriters for the offering.

** According to the prospectus, after the completion of this secondary offering, the shareholding ratio of TCO Group Holdings—an investment entity owned by the aforementioned private equity firms and certain company insiders—will decrease from about 82% to about 75% of INNV's approximately 136.45 million outstanding shares (link).

** As of Tuesday, INNV shares have risen 105% year-to-date.

** The company went public in 2021 with an Initial Public Offering (IPO) at $21 per share (link).

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