What happened
Shares of the lending services company Open Lending (LPRO 2.61%) were up about 10% as of 11:20 a.m. EDT after the company announced the pricing of an upsized secondary offering.
So what
Open Lending, a company that provides automated lending solutions to financial institutions, announced today the pricing of a secondary public offering of 9 million shares of its common stock at $34 per share.
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The shares are being sold by existing stockholders including Nebula Holdings, True Wind Capital, Bregal Sagemount, and certain executive officers of Open Lending.
In the same release, Open Lending also said it will repurchase $20 million of the selling stockholders' shares at the same price paid to the selling stockholders in the offering.
Now what
Because the stock offering is from existing shareholders, it won't dilute other shareholders. The offering was also upsized from a few days ago when Open Lending only planned to offer 7.5 million shares, suggesting there is strong demand for the stock.
Open Lending's stock is up nearly 283% since June. The company continues to grow partnerships with lenders, increasing certified loans through its platform, and growing revenue 17% in 2020, so it looks to be in good shape.
