Here's Why Evertec Shares Are Nosediving Wednesday

Evertec Inc EVTC shares are trading lower by 7% to $33.65 Wednesday afternoon after the company announced a secondary offering of common stock by Popular, Inc..

What Happened?

Evertec says the Selling Stockholder will receive all of the net proceeds from the offering. The company itself is not selling any shares of common stock in the offering and will not receive any proceeds from the offering.

In addition, Evertec says the company has entered into a repurchase agreement with the Selling Stockholder to repurchase approximately $25.0 million of the Company's shares of common stock from the Selling Stockholder in a private transaction, concurrently with the closing of the offering.

Evertec says the share repurchase is subject to the completion of the offering. The closing of the offering is not contingent on the closing of the share repurchase. After the completion of this offering and the share repurchase, it is expected that the Selling Stockholder will no longer own equity of the company.

According to data from Benzinga Pro, Evertec has a 52-week high of $51.06 and a 52-week low of $32.84.