Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Restoration Hardware Announces Follow-On Offering

Corte Madera, Calif.-based Restoration Hardware Holdings (NYSE: RH  ) insiders announced a plan to capitalize on its strong share price Friday.

Eight million shares of Restoration Hardware stock will soon go on the market at an offering price of $70 per share. Underwriters may also exercise an overallotment option to sell an additional 1.2 million shares, potentially raising the total value of the offering to as much as $644 million in cash.

Although described in a company press release as a "follow-on" offering, the details of the company's announcement makes clear that this is actually a "secondary" offering of shares -- a sale by existing large stakeholders, cashing out their stock at a profit. As such, Restoration Hardware notes that "the Company will not receive any proceeds from the sale of shares."

Markets reacted poorly to the proposal, as Restoration Hardware shares dropped 3.8% in Friday trading to close at $68.60, 2% below the secondary offering price.

Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2536273, ~/Articles/ArticleHandler.aspx, 9/27/2016 12:03:07 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,174.85 80.02 0.44%
S&P 500 2,153.78 7.68 0.36%
NASD 5,286.68 29.19 0.56%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/27/2016 11:46 AM
RH $31.98 Up +0.51 +1.62%
Restoration Hardwa… CAPS Rating: ***