The Securities and Exchange Commission is taking a close look at J.C. Penney Co. Inc.’s September stock offering — which came amid a sharp sell-off and surprised investors.
This story first appeared in the December 6, 2013 issue of WWD. Subscribe Today.
Penney’s said in a regulatory filing late Thursday that on Oct. 7 it received “a letter of inquiry from the Securities and Exchange Commission requesting information regarding the company’s liquidity, cash position and debt and equity financing, as well as the company’s underwritten public offering of common stock announced on September 26.”
Shortly before the offering, chief executive officer Myron “Mike” Ullman 3rd told investors that the company wouldn’t need to raise additional funds, according to widespread reports at the time. The retailer, however, denied the ceo made such statements. The retailer said it was cooperating with the inquiry and providing the requested material. A Penney’s spokeswoman declined to comment beyond the filing.
Penney’s sold 84 million shares for $9.65 each during the Goldman Sachs-led offering — raising more than $800 million to help shore up its balance sheet and ease investor concerns.
But the stock continues to be a roller coaster. The issue fell 8.4 percent to $8.85 in regular trading Thursday and another 2.5 percent to $8.63 in after-hours action.