Ares Management Announces Pricing of Offering of Class A Common Stock
Ares Management (NYSE: ARES) has announced the pricing of its public offering of 2,650,000 shares of Class A common stock at $134.75 per share.
The company has also granted the underwriters an option to purchase an additional 397,500 shares. The offering is expected to close on or around June 14, 2024, pending customary closing conditions.
Ares plans to use the proceeds for general corporate purposes including debt repayment, strategic acquisitions, and growth initiatives. A registration statement has been filed with the SEC and is effective.
The offering will be conducted via a prospectus, available on the SEC's website or by contacting Morgan Stanley.
- Public offering of 2,650,000 shares priced at $134.75 each.
- Underwriters have an option to buy an additional 397,500 shares.
- Proceeds to be used for debt repayment, strategic acquisitions, and growth initiatives.
- SEC registration statement for securities is effective.
- Potential shareholder dilution due to issuing 2,650,000 new shares.
- Additional 397,500 shares option could further dilute shares.
- Public offering might indicate a need for immediate capital.
Insights
The announcement of a public offering of 2,650,000 shares of Class A common stock by Ares Management Corporation at a price of
The pricing of the offering is a key element, as it reflects the market's valuation of the company. The market price of
In the short term, stock prices might experience downward pressure due to the dilution effect. Long-term benefits, however, could emerge if the proceeds are utilized effectively in profitable growth endeavors and strategic acquisitions that enhance the company's value proposition.
From a market perspective, the timing and pricing of the offering by Ares Management Corporation provide essential insights into the company’s strategic vision and market positioning. The decision to conduct an offering signifies that the company perceives the current market conditions as favorable for attracting capital. This might point to an underlying confidence in the company's future performance and the broader market environment.
In terms of strategic acquisitions and growth initiatives, the funds raised can position Ares more competitively within the asset management space. This sector is highly dynamic and having readily available capital can allow Ares to seize opportunities more swiftly, potentially leading to market share expansion and enhanced revenue streams.
Investors should be attentive to subsequent announcements regarding specific acquisitions or growth projects funded by this offering, as they will provide clearer indicators of the strategic benefits and potential returns on this capital raise.
Ares intends to use the net proceeds from the Offering for general corporate purposes, including repayment of debt, strategic acquisitions and to fund growth initiatives.
A registration statement on Form S-3 relating to these securities has been filed with the Securities and Exchange Commission (the “SEC”) and has become effective. The Offering may be made only by means of a prospectus supplement and accompanying prospectus. A copy of the final prospectus supplement and accompanying prospectus related to the Offering can be obtained, when available, for free by visiting the SEC’s website at http://www.sec.gov or by contacting Morgan Stanley, Attention: Prospectus Department, 180 Varick Street, 2nd Floor,
This press release does not constitute an offer to sell or a solicitation of an offer to buy these securities, nor does it constitute an offer, solicitation or sale of these securities in any jurisdiction in which such offer, solicitation or sale is unlawful. Nothing in this press release constitutes an offer to sell or solicitation of an offer to buy any securities of Ares or an investment fund managed by Ares or its affiliates.
About Ares Management Corporation
Ares Management Corporation (NYSE: ARES) is a leading global alternative investment manager offering clients complementary primary and secondary investment solutions across the credit, real estate, private equity and infrastructure asset classes. We seek to provide flexible capital to support businesses and create value for our stakeholders and within our communities. By collaborating across our investment groups, we aim to generate consistent and attractive investment returns throughout market cycles. As of March 31, 2024, Ares Management Corporation’s global platform had approximately
Forward-Looking Statements
Statements included herein contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, which reflect our current views with respect to, among other things, future events, operations and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as “outlook,” “believes,” “expects,” “potential,” “continues,” “may,” “will,” “should,” “seeks,” “predicts,” “intends,” “plans,” “estimates,” “anticipates,” “foresees” or negative versions of those words, other comparable words or other statements that do not relate to historical or factual matters. The forward-looking statements are based on our beliefs, assumptions and expectations of our future performance, taking into account all information currently available to us. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to our operations, financial results, financial condition, business prospects, growth strategy and liquidity. Actual results may vary materially from those indicated in these forward-looking statements as a result of a number of factors, including those described from time to time in our filings with the SEC. Ares does not undertake any obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240612379744/en/
Investors:
Greg Mason
or
Carl Drake
irares@aresmgmt.com
+1-888-818-5298
Source: Ares Management Corporation
FAQ
What is the pricing for Ares Management's public offering of Class A common stock?
How many shares are being offered in Ares Management's public offering?
When is the closing date for Ares Management's stock offering?
What will Ares Management use the proceeds from the offering for?
What is the stock symbol for Ares Management?
Has Ares Management filed a registration statement for the offering?
Can underwriters purchase additional shares in Ares Management's offering?
