Why First Watch Restaurant Group Tumbled This Week
The announcement of a secondary stock issue gave First Watch Restaurant Group (NASDAQ: FWRG) a bit of indigestion this week. As a result, across the five trading days the company's share price dived a queasy 18%, according to data compiled by S&P Global Market Intelligence.
On Monday afternoon, First Watch, owner of the eponymous chain of early-in-the-day restaurants, announced a selling shareholder would be selling its stock in a public offering. Two days later, that offer was priced at $15.50 per share.
The selling shareholder is private equity firm Advent International, which currently owns just over 79% of First Watch's common stock. Advent is divesting 4.5 million shares in the issue; this will reduce its holding to slightly more than 42.2 million shares, or 71.5% of the total.
Source Fool.com
