Why Bowman Consulting Shares Are Plunging Today

Shares of Bowman Consulting Group Ltd BWMN are trading lower after the company priced its previously announced underwritten public offering at $34.00 per share.

The offer price represents a 14% discount to the company’s closing price as of March 26, 2024.

A total of 1.32 million shares are sold by the company and 147,058 shares are sold by the selling stockholders, Gary Bowman, the company’s President, Chief Executive Officer and chair of the board of directors and Michael Bruen, the company’s Executive Vice President and Chief Operating Officer and a director of the board.  

The company expects gross proceeds from the offering to be approximately $45.0 million. Bowman and the selling stockholders have granted the underwriters an option to purchase up to an additional 220,588 shares.

The company intends to use the proceeds from the sale for corporate purposes, including expansion, potential acquisitions and repayment of debt. Bowman will not receive any proceeds from the sale of shares of common stock by the selling stockholders.

The offering is expected to close on April 1, 2024, subject to customary closing conditions. BofA Securities and Baird are acting as joint lead book-running managers for the offering.

Price Action: BWMN shares are trading lower by 10% at $35.50 in premarket on the last check Wednesday.