Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of Icahn Enterprises (NASDAQ:IEP), a property management and investment company founded by investment mogul Carl Icahn, shed as much as 13% after announcing a public share offering at a price significantly below yesterday's close.
So what: Icahn Enterprises registered a public offering of 3,174,604 shares of Icahn Enterprises at a price of just $63 as compared to its closing price on Thursday of $71.49. The overallotment also allows the underwriters to purchase an additional 476,191 shares at that price if they choose to. With roughly 104.9 million shares outstanding, a 3% boost to Icahn Enterprises' share count, which ultimately will raise about $200 million, is slicing close to $950 million off its market cap.
Now what: I wasn't a big fan of Icahn Enterprises before the offering, with the share price having doubled in just a matter of weeks since the year began. The huge disparity between the offer price and the closing price yesterday indicates to me that this was, more than likely, an emotion-driven rally, and Icahn Enterprises could have further to fall.
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