Why Stagwell Shares Are Getting Hammered

Stagwell Inc STGW shares are trading lower by 21.96% to $6.86 Tuesday morning after the company announced the launch of a 16 million share secondary offering of common stock.

The selling stockholders expect to grant the underwriters a 30-day option to purchase up to an additional 2,400,000 shares of Class A Common Stock.

See Also: Here's Why FuelCell Shares Are Rising

Stagwell itself will not receive any proceeds from the sale of shares in the offering. The offering is subject to market and other conditions.

According to data from Benzinga Pro, Stagwell has a 52-week high of $9.23 and a 52-week low of $4.80.