Stagwell (Nasdaq: STGW) Announces Pricing of Secondary Offering of Class A Common Stock

Rhea-AI Summary

Stagwell Inc. (Nasdaq: STGW) has announced the pricing of a secondary offering of 16,000,000 shares of its Class A common stock at a price of $6.75 per share. This offering, which will close on or around March 14, 2023, does not yield any proceeds for the company as it is conducted by entities affiliated with The Stagwell Group LLC and Goldman Sachs. The underwriters have a 30-day option to purchase up to an additional 2,400,000 shares. Morgan Stanley and Goldman Sachs are the lead managers for this offering. The company has filed necessary documentation with the SEC as part of the offering process.

Positive

• Pricing of secondary offering at $6.75 per share indicates investor interest.
• Potential additional sale of 2,400,000 shares could further strengthen market presence.

Negative

• Company will not receive any proceeds from the sale of shares in the offering.

NEW YORK, March 9, 2023 /PRNewswire/ -- Stagwell Inc. (Nasdaq: STGW) ("Stagwell" or the "Company"), the challenger network built to transform marketing, today announced the pricing of its previously announced underwritten 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") at a public offering price of $6.75 per share. The offering is expected to close on or about March 14, 2023, subject to satisfaction of customary closing conditions. The Selling Stockholders also granted the underwriters a 30-day option to purchase up to an additional 2,400,000 shares of Class A Common Stock at the public offering price, less underwriting discounts and commissions. The Company will not receive any proceeds from the sale of shares in the offering.

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, the expected completion of the offering.

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, the Company's and the Selling Stockholders' ability to satisfy the conditions to closing and consummate the 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 stock offering price for Stagwell Inc. (STGW)?

The stock offering price for Stagwell Inc. (STGW) is $6.75 per share.

How many shares is Stagwell Inc. (STGW) offering?

Stagwell Inc. (STGW) is offering 16,000,000 shares of its Class A common stock.

When will the offering for Stagwell Inc. (STGW) close?

The offering for Stagwell Inc. (STGW) is expected to close on or about March 14, 2023.

Who are the underwriters for Stagwell Inc.'s (STGW) offering?

Morgan Stanley and Goldman Sachs are the joint lead book-running managers for Stagwell Inc.'s (STGW) offering.

Will Stagwell Inc. (STGW) receive any proceeds from the offering?

No, Stagwell Inc. (STGW) will not receive any proceeds from the sale of shares in the offering.