Hagerty Announces Offering of 9 Million Class A Shares by Major Holder

what happened

Hagerty, which provides vehicle insurance and runs a membership club for car enthusiasts, said its shareholder Hagerty Holding Corp. (HHC) intends to sell 9,000,000 Class A shares in an underwritten public offering. The seller also plans to give underwriters a 30-day option to buy up to 1,350,000 more shares. Hagerty will pay the expenses other than the underwriting discount, but it will not receive any of the sale proceeds.

According to HHC, the net proceeds will fund a redemption of a matching number of HHC shares for the benefit of the Kim Hagerty Revocable Trust. J.P. Morgan and Wells Fargo Securities are leading the offering. The details come from a press release published by TradingView; Reuters reported the same 9 million share figure and the same lead managers.

why it matters

A sale of this size by an existing shareholder adds stock to the market, and offerings like this often weigh on share prices in the short term. The company does not receive cash from the sale, so the deal does not directly change its capital base.

market impact

Hagerty shares: extra supply from the offering puts pressure on the stock price

• ▼Hagerty shares pressure down — sale of 9 million shares adds supply to the market

tags

instruments