Why MeridianLink (MLNK) Shares Are Getting Hammered

MeridianLink Inc MLNK shares are trading lower by 14.5% to $18.88 Wednesday morning after the company priced a previously announced secondary offering of 6,906,015 shares of its common stock by certain existing stockholders at $19.00 per share.

This represents an increase of 406,015 shares from the initially announced size. The underwriters have been granted a 30-day option to purchase up to an additional 675,000 shares.

The offering, scheduled to close on February 9, comprises entirely of shares to be sold by the selling stockholders, with 4.5 million shares offered to the public and 2,406,015 shares to be repurchased by the company.

MeridianLink will not receive proceeds from the sale. The company intends to repurchase the shares from the underwriters at the same price per share using existing cash on hand.

Citigroup Global Markets Inc. and J.P. Morgan Securities LLC are the lead book-running managers, with several other firms serving as book-running managers and co-managers.

See Also: MeridianLink Announces Preliminary Unaudited Fourth Quarter Operating Results and Year-End Cash Position

According to data from Benzinga Pro, MLNK has a 52-week high of $25.88 and a 52-week low of $13.62.