Why Shares of GrafTech Are Falling Today
Shares of graphite materials producer GrafTech International (NYSE: EAF) fell more than 10% on Thursday after the company's majority shareholder launched a secondary offering to sell down its stake. The sell-off adds to the woes the company's shareholders have experienced since its April 2018 initial public offering, with the stock now off more than 17% from the IPO price.
GrafTech on Thursday morning announced majority shareholder Brookfield Business Partners had launched a secondary block trade to sell 11.18 million GrafTech shares to Morgan Stanley. Subject to the completion of the block trade, GrafTech was set to repurchase $250 million in shares from the selling stockholder at the price per share paid in the block trade.
GrafTech's graphite electrodes are used in the production of steel. Image source: Getty Images.
Source Fool.com
