05:15 AM EDT, 07/25/2024 (MT Newswires) -- Allegro MicroSystems ( ALGM ) said late Wednesday that it priced a primary offering of 25 million shares at $24 apiece, resulting in gross proceeds of $600 million to Allegro.

The company said it granted underwriters a 30-day option to purchase up to about 3.8 million additional shares. The offering will likely close on or about Friday.

The proceeds will be $579 million after accounting for the underwriters' discount of $0.84 per share.

The proceeds plus cash on hand or additional borrowings under the company's term loan or revolving credit facility will be used to repurchase shares from Sanken Electric, Allegro's majority shareholder.

Sanken will hold about 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 on an as-adjusted basis and after giving effect to the offering and the share repurchase.

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