Why Bridgepoint Education Stock Plunged Today
Shares of Bridgepoint Education (NYSE: BPI) have plunged today, down by 13% as of 1:34 p.m. EDT, after the company said that it had priced a secondary offering that was announced yesterday. Private equity firm Warburg Pincus, Bridgepoint's largest shareholder, is reducing its stake in the company from 33% to 26%.
Warburg Pincus is selling nearly 2.1 million shares out of the total 9.6 million shares it held before the offering. All net proceeds of the offering will go to Warburg Pincus, as no shares are being sold by Bridgepoint directly. No executives are selling shares in the offering, either. The offering is expected to close on Aug. 18, 2017.
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Source: Fool.com
