In the aftermarket trading session, at last check, Focus Financial Partners Inc. (FOCS) shares had plunged by -6.78% to $50.70. FOCS stock closed the previous session gaining 2.18% to $54.39. The FOCS stock volume traded 0.39 million shares. FOCS shares have moved up in the past week by 1.12%. In the past three and six months, the FOCS stock has jumped by 22.83%, and shed 18.21% respectively. Furthermore, Focus Financial Partners Inc. is currently valued in the market at $4.00 billion and has 52.20 million outstanding shares.
Here’s what you need to know about Focus Financial Partners Inc.
Focus Financial Partners Inc. is a wealth management company that provides financial management and consultation services. The company’s target market is the multi-millionaires and high net worth personnel, families, and companies. To these ultra-high worth clients, FOCS stock provides specifically investment advices, tax planning and tax return preparation consultation, family office services as well as other services. The company reaches out to clients in the form of technical financial and administrative services regarding recordkeeping and finances. The business model is based on the commissions and distribution fees that come through sale and recommendation of financial products. Focus Financial Partners Inc. also provides insurance and investment products. The origin of the company is in 2006 and is established its headquarters in New York.
Announcement of Secondary offering of Class A common stocks and liquidation of Kohlberg’s position in FOCS stock
Focus Financial Partners recently announced on 21st June 2021, the selling of underwritten secondary offering of Class A common stock shares. The pricing of the A class shares is set to be at a public offering price of $50.30 per share. The FOCS stock is pricing a total number of 7,144,244 shares which it is offering through selling specifically stockholders of Focus that are associated with Kohlberg Kravis Roberts & Co. L.P. (“KKR”) and 273,685 shares that are being offered by focus on behalf of current unit-holders of FFP, LLC which is the operating subsidiary of Focus Financial Partners Inc- totaling the shares offered by FOCS stock equal to 7,417,929.
This selling of the Kohlberg Kravis Roberts & Co. L.P’s shares of FOCS stock allows Kohlberg to no longer have interest or stake in Focus LLC. Furthermore, Kohlberg (KKR) had nominated Christopher J. Harrington as the member of Focus Board of Directors, however now due to disassociation, Mr. Harrington is expected to resign from the Board of Directors.
The date that has been expected for the closing subject to customary closing conditions is 23rd June 2021. The Kohlberg’s share of the proceeds from its stock equity after the closing of this offering will not have any of the proceeds contributed to the Focus for the Class A common stock.
However Focus will sell its share of offerings and provide the net proceeds in a transaction to Focus LLC in order to acquire newly issued common units in Focus LLC. Focus LLC will provide these common units which will be ordered from certain unitholders which also consist of Focus’ employees and higher-ups of its partner firms. These however exclude the executive members and directors of the company and Focus will cancel the corresponding portion of Class B shares wherever it complies.
The offering will not dilute the shares and stockvalue of the existing shareholders. Goldman Sachs & Co. LLC has been chosen for the offering as the sole book-running manager.