Fifty million common shares of Cobalt International (NYSE:CIE) are soon to hit the market. Stockholders are selling at $26.80 per share in an underwritten public offering. Additionally, the company's underwriter has been granted a 30-day purchase option for up to an additional 7.5 million shares.
The selling shareholders are affiliates of Goldman Sachs, The Carlyle Group, Riverstone Holdings, First Reserve, and KERN Partners. In the press release announcing the issue, Cobalt International stressed it will receive no proceeds from the sale.
Citigroup is the underwriter of the offering. Cobalt International expects the issue to close on May 10.
Fool contributor Eric Volkman has no position in any stocks mentioned. The Motley Fool recommends Goldman Sachs and owns shares of Citigroup. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.