Zachary Scheidt

ReneSola: Secondary Offering Pressures Shares

The short answer is that we won't know until the deal actually transpires...

Typically a secondary offering price depends on how much demand the underwriters can drum up. About half of the time, a secondary will price at the previous day’s closing price. But if it is becoming harder to find enough firms to take the stock, the price will then be set at a discount to the close (sometimes a significant discount). All buyers get the same price and it is really up to the underwriters to set the final offer price.

Thanks for the question - maybe at some point I should do a post about the mechanics of an IPO offering or a secondary offering.

ZDS