Clover Health (CLOV) Stock Dinged 9% on 35M Share Stock Offering

Clover Health Investments, Corp. (Nasdaq: CLOV) shares fell more than 9% lower after-hours after the company announced a proposed public offering of 35 million shares of its Class A Common stock, with underwriters being granted a 30-day option to purchase up to 5.25 million additional shares.

The net proceeds from the offering, where Citigroup and Deutsche Bank Securities are acting as joint book-running managers and SVB Leerink and Canaccord Genuity LLC as book-runners, are intended to be used for working capital and general corporate purposes.

Because this is a primary share offering, shares outstanding will increase to about 456 million, or more if underwriters exercise their option.

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