1. SEI plans a no-proceeds offering of 1.19 million shares at $19.55. 2. This move involves borrowing shares for hedging purposes.
The large share offering can dilute existing shares, impacting investor confidence negatively. Past occurrences of similar offerings have led to price drops due to perceived vulnerability.
The share offering directly affects SEI's capital structure and market perception, significant factors for investors.
The immediate dilution effect typically influences stock prices shortly after such announcements, but can stabilize over time.