Allegro microsystems announces pricing of primary offering

Manchester, n.h., july 24, 2024 (globe newswire) -- allegro microsystems, inc. (“allegro”) (nasdaq: algm), a global leader in power and sensing solutions for motion control and energy-efficient systems, today announced the pricing of a primary offering of 25,000,000 shares of common stock at a public offering price of $24.00 per share, resulting in gross proceeds of $600,000,000 to allegro (or $579,000,000 to allegro after giving effect to the underwriters' discount of $0.84 per share). in addition, allegro has granted the underwriters a 30-day option to purchase up to an additional 3,750,000 shares of its common stock at the public offering price, less underwriting discounts and commissions. proceeds from the offering, together with cash on hand or additional borrowings under allegro's term loan facility or revolving credit facility, will be used to repurchase shares from allegro's majority shareholder, sanken electric co., ltd. (“sanken”) at a price per share equal to the price per share at which the underwriters will purchase shares of our common stock in the equity offering from allegro. on an as adjusted basis after giving effect to the offering and the share repurchase, sanken will hold approximately 33.2% (or 32.5% if the underwriters' option to purchase additional shares of allegro's common stock is exercised in full) of allegro's outstanding common stock. the offering is expected to close on or about july 26, 2024, subject to the satisfaction of customary closing conditions.
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