DENVER - Gates Industrial (NYSE:GTES) Corporation plc (NYSE:GTES), a global manufacturer of power transmission and fluid power solutions, announced the pricing of a secondary offering of 17,500,000 ordinary shares by certain selling stockholders affiliated with Blackstone (NYSE:BX) Inc.
The shares are to be offered by underwriters in a variety of transactions at market prices or at negotiated prices. The sale, which also includes a 30-day option for underwriters to purchase up to an additional 2,625,000 shares, is expected to close on May 21, 2024, subject to standard closing conditions.
The company clarified that it is not selling any shares itself and will not receive any proceeds from the offering. A robust team of financial institutions, including Citigroup, Goldman Sachs (NYSE:GS) & Co. LLC, and Jefferies, are leading the book-running for the offering, with several other banks also participating as joint book-running managers.
This offering follows the company's registration statement submitted to the Securities and Exchange Commission (SEC), which includes a prospectus providing detailed information about Gates and the offering. Interested parties can access these documents for free via the SEC's EDGAR database or directly from the underwriters.
Gates has a diverse product range that serves various end markets, including transportation and consumer applications, with operations spanning over 130 countries. The company's statement also included forward-looking information, which involves certain risks and uncertainties that could cause actual results to differ from those projected.
The information for this article is based on a press release statement from Gates Industrial Corporation plc .
InvestingPro Insights
As Gates Industrial Corporation plc (NYSE:GTES) navigates the secondary offering of its shares, investors are keenly observing the company's financial health and market position. According to InvestingPro data, Gates Industrial boasts a solid market capitalization of $4.44 billion, underscoring its significant presence in the industry. The company trades at a P/E ratio of 18.4, which adjusts to a slightly lower 18.01 when considering the last twelve months as of Q1 2024, indicating a balance between its share price and earnings performance.
Investors looking at growth relative to earnings will find the PEG ratio of 0.93 particularly interesting, as it suggests that the company's earnings growth is almost in line with its P/E ratio. This could be a signal to investors that the company's stock is reasonably valued based on its expected growth rates. Additionally, with a Price/Book ratio of 1.4 for the same period, the company presents a potentially attractive valuation in comparison to its book value.
Two InvestingPro Tips that stand out for Gates Industrial include the aggressive share buybacks by management and a strong return over the last three months, with a 27.82% price total return. Such strategic buybacks could be a sign of confidence from management in the company's future, while the recent strong return might attract investors looking for momentum in their investments.
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