Why Arhaus Shares Are Nosediving

Arhaus Inc ARHS Arhaus shares are trading lower by 13.6% to $10.54 Wednesday afternoon after the company announced an underwritten public offering of 12 million shares of Class A common stock by selling shareholders.

The public offering is by certain affiliated selling stockholders associated with Freeman Spogli & Co. These stockholders also plan to provide underwriters a 30-day option for the purchase of up to 1.8 million additional shares of Class A common stock.

The offering's completion and terms are contingent on market conditions. All proceeds from the offering will go to the Selling Stockholders, with Arhaus not participating in the sale or receiving any proceeds.

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According to data from Benzinga Pro, Arhaus has a 52-week high of $15.27 and a 52-week low of $6.05.