Gulfport Energy shares plunged after public offering price was made at $95


The sales price of the 1.3 million shares in Gulfport Energy Corporation in an underwritten public offering announced this week was revealed at $95 per share. And a day later, Gulfport shares plunged 11% in value.

In a filing with the Securities and Exchange Commission, Gulfport said the price was part of the offering by certain stockholders.

The $95-a-share offer compared to Gulfport’s closing Wall Street trading  price on Wednesday at $107.88. The settlement was $3.42 higher for a 3.27% gain.

By Thursday, Gulfport shares dropped 11.06% or $11.93 per share and closed at $95.95, nearly the amount offered in the underwritten public offering.

Such selling stockholders granted the underwriters a 30-day option to purchase up to an additional 195,000 shares of the Gulfport’s common stock to cover any overallotments.

The company made it clear in the original announcement of the public offering that it would not sell any shares of its common stock as part of the offering.

The offering is expected to close on June 26, 2023, subject to customary closing conditions. Gulfport again said it intended to purchase from certain of the selling stockholders nearly $25 million of shares of the company’s common stock and it intended to pay the per share purchase price to be paid by the public in the offering.