Shares of C J Energy Services Inc (NYSEMKT:CJ) have plunged 8.8% on Friday after the oil services company priced a public offering of 7 million shares at $32.5 a piece. In terms of the offering, C&J Energy will sell 6 million shares while a shareholder will divest 1 million shares. C&J expects to raise gross proceeds of around $195 million, which (after fees) management plans to use for general corporate purposes, including funding capex for this year as well as for growth initiatives.
Although shares of C J Energy Services Inc (NYSEMKT:CJ) have fallen due to dilution, bulls believe the stock can do well if crude prices steady and OPEC extends its cuts. They can also do well if management puts the capital raised to good use.
What Does The Smart Money Sentiment Say?
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Given that C J Energy Services executed its initial public offering in March 2017, we don’t have any data concerning elite fund holdings as of yet.
The Bottom Line
C J Energy Services Inc (NYSEMKT:CJ) shares are deep in the red today due to a secondary offering. For more reading, check out ‘11 Countries That Consume The Most Oil In the World‘.