Why Las Vegas Sands Stock Dropped After Hours

Las Vegas Sands Corp. LVS shares were trading lower in Tuesday's after-hours session after the company announced the commencement of a proposed secondary public offering of $2 billion of shares of its common stock by the Selling Stockholders, Miriam Adelson and The Miriam Adelson Trust.

What To Know: The company stated it intended to repurchase up to $250 million of the shares of common stock from the Offering at the same per share price to be paid to the Selling Stockholders by the underwriters. However, the company will not receive any of the proceeds from the sale of common stock related to the Offering. The Selling Stockholders' current plan for the net proceeds is to fund the purchase of a majority interest in a professional sports franchise.

Additionally, it is anticipated the Selling Stockholders will be limited from engaging in specific transactions pertaining to shares of the company's common stock upon entering into lock-up agreements which will last a period of 365 days from the pricing date of the Offering.

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LVS Price Action: Shares of LVS were down 4.85% at $47.66 in the after-hours session at the time of publication, according to Benzinga Pro. 

Photo: Dorothe from Pixabay