Why the shares of open loans are increasing today
Loan service company shares Open loan (NASDAQ: LPRO) were up about 10% as of 11:20 a.m. EDT after the company announced the price of an increased secondary offering.
Open Lending, a company that provides automated lending solutions to financial institutions, today announced the price of a secondary public offering of 9 million shares of its common stock at $ 34 per share.
Image source: Getty Images.
The shares are sold by existing shareholders, including Nebula Holdings, True Wind Capital, Bregal Sagemount and certain senior executives of Open Lending.
In the same statement, Open Lending also said it would repurchase $ 20 million of the selling shareholders’ shares at the same price paid to the selling shareholders as part of the offer.
Because the offering of shares comes from existing shareholders, it will not dilute other shareholders. The supply has also been increased compared to a few days ago, when Open Lending only planned to offer 7.5 million shares, which suggests strong demand for the share.
Open Lending stock is up nearly 283% since June. The company continues to develop partnerships with lenders, increasing certified loans through its platform and increasing revenue by 17% in 2020, so it appears to be in good shape.
10 stocks we like better than Open Lending Corporation
When investment geniuses David and Tom Gardner have stock advice, he can pay to listen. After all, the newsletter they’ve been distributing for over a decade, Motley Fool Fellowship Advisor, has tripled the market. *
David and Tom just revealed what they think are the top ten stocks investors can buy right now … and Open Lending Corporation was not one of them! That’s right – they think these 10 stocks are even better buys.
See the 10 actions
* Stock Advisor returns as of February 24, 2021
Bram Berkowitz does not have a position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.