Stagwell Announces Launch of Secondary Offering of Class A Common Stock

Rhea-AI Summary

On March 8, 2023, Stagwell Inc. (STGW) announced a public offering of 16 million shares of its Class A common stock, initiated by The Stagwell Group LLC and Goldman Sachs. The underwriters may purchase an additional 2.4 million shares. Stagwell will not receive any proceeds from this offering, which is contingent on market conditions. Morgan Stanley and Goldman Sachs are leading the underwriting process, with other firms participating. A registration statement has been filed with the SEC, and the offering details will be outlined in a prospectus supplement. This announcement highlights Stagwell's ongoing market activities.

Positive

• Public offering of 16 million shares could enhance liquidity for shareholders.
• Underwriters have a 30-day option to purchase an additional 2.4 million shares, indicating strong demand.

Negative

• Stagwell will not benefit from the proceeds of the offering, limiting potential growth capital.
• The need for a public offering may signal a weakness in capital reserves.

NEW YORK, March 8, 2023 /PRNewswire/ -- Stagwell Inc. (Nasdaq: STGW) ("Stagwell" or the "Company"), the challenger network built to transform marketing, today announced the launch of a public offering of an aggregate of 16,000,000 shares of its Class A common stock, par value $0.001 per share (the "Class A Common Stock"), by entities affiliated with The Stagwell Group LLC and Goldman Sachs (collectively, the "Selling Stockholders"). The Selling Stockholders expect to grant the underwriters a 30-day option to purchase up to an additional 2,400,000 shares of Class A Common Stock. The Company will not receive any proceeds from the sale of shares in the offering. The offering is subject to market and other conditions.

Morgan Stanley and Goldman Sachs & Co. LLC are acting as joint lead book-running managers and as representatives of the underwriters for the offering, SVB Securities LLC and Wells Fargo Securities, LLC are also acting as joint book-running managers for the offering. Rosenblatt Securities Inc. is acting as co-manager for the offering.

The Company has filed a registration statement (including a base prospectus) and a preliminary prospectus supplement with the U.S. Securities and Exchange Commission ("SEC") for the offering to which this communication relates and will file a final prospectus supplement relating to the offering. The offering is being made only by means of a prospectus supplement and the accompanying prospectus. Before investing, prospective investors should read the prospectus supplement, accompanying prospectus and documents incorporated by reference therein for more complete information about Stagwell and the offering. You may obtain these documents 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, New York, NY 10014; or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, by telephone at (866) 471-2526, or by email at Prospectus-ny@ny.email.gs.com.

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 prior to the registration or qualification under the securities laws of any such state or other jurisdiction.

About Stagwell

Stagwell is the challenger network built to transform marketing. We deliver scaled creative performance for the world's most ambitious brands, connecting culture-moving creativity with leading-edge technology to harmonize the art and science of marketing.  Led by entrepreneurs, our specialists in 34+ countries are unified under a single purpose: to drive effectiveness and improve business results for their clients.

Forward-Looking Statements

This press release contains 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. Statements in this press release that are not historical facts constitute forward-looking statements. Forward-looking statements in this press release include, but are not limited to, statements relating to the size, timing and other terms of the proposed offering and the expected completion thereof.

These forward-looking statements are subject to various risks and uncertainties, many of which are outside Stagwell's control. Important factors that could cause actual results and expectations to differ materially from those indicated by such forward-looking statements include, without limitation, market and other conditions, the Company's and the Selling Stockholders' ability to satisfy the conditions to closing and consummate the proposed transaction and other risks and uncertainties discussed in the prospectus supplement related to the offering, Stagwell's Annual Report on Form 10-K for the year ended December 31, 2022 and its other reports filed from time to time with the SEC. Unless required by law, Stagwell undertakes no obligation to publicly update or revise any forward-looking statements to reflect circumstances or events after the date they are made.

Contact:

Jason Reid
Stagwell Inc.
IR@StagwellGlobal.com

 

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SOURCE Stagwell Inc.

FAQ

What is the significance of Stagwell's public offering on March 8, 2023?

Stagwell announced a public offering of 16 million shares to enhance liquidity, although it will not receive any proceeds from this sale.

How many shares of Class A common stock is Stagwell offering?

Stagwell is offering an aggregate of 16 million shares of its Class A common stock.

Who are the underwriters for Stagwell's stock offering?

Morgan Stanley and Goldman Sachs are acting as joint lead book-running managers for the offering.

Will Stagwell receive any proceeds from the stock offering?

No, Stagwell will not receive any proceeds from the sale of shares in this offering.

What potential risks are associated with Stagwell's public offering?

The offering is subject to market conditions and may indicate weaknesses in capital reserves for Stagwell.