J.C. Penney Seeking $1 Billion from Share Sale
Bloomberg reported that J.C. Penney announced the sale of 84 million shares to raise cash. Based on the yesterday’s closing share price, the value of the sale would be about $1 billion.
Bloomberg noted that J.C. Penney’s shares fell 15% to its lowest level since 2000 on September 25, 2013 after a Goldman Sachs debt analyst raised concerns about the chain’s liquidity. For the year, Penney’s shares are down 47%.
Bloomberg quotes an analyst as saying, “The fact that the company is raising cash ‘doesn’t bode well for the third quarter’ results nor will the offering be good for current investors because the share count will increase by more than a third, which means the stock price will likely fall by that amount.”
To read the entire Bloomberg story, click here.
Previously on abfjournal: Pershing to Sell Entire Stake in J.C. Penney, August 27, 2013