Landsea Homes Prices Stockholder Equity Offering At 6% Discount

Landsea Homes Corp LSEA has priced the previously announced underwritten secondary offering by its stockholder, Green Investment Alpha Ltd., of 4.21 million shares at $9.75 per share.

The offer price represents a 6% discount to the company’s closing price on Aug. 21, 2023.

The selling stockholder has granted the underwriters a 30-day option to purchase up to 631,136 additional shares of the company's common stock.

The offering is expected to close on Aug. 24, 2023, subject to the satisfaction of customary closing conditions.

Also, through participation in the offering, the Dallas-based company will repurchase 800,000 of the initial number of shares sold by the selling stockholder at a per-share price equal to the public per share offering price. 

Landsea will fund the share repurchase with cash on hand. 

The company held $74.2 million in cash and equivalents as of June 30, 2023.

Price Action: LSEA shares are trading lower by 8.29% at $9.53 in premarket on Tuesday.