Rao’s pasta parent Sovos Brands stock falls after public share offering prices at 6.1% discount

Shares of Sovos Brands Inc. dropped 4.7% in premarket trading Tuesday, after the parent of Rao’s pasta and sauce and Noosa yogurt announced the pricing of its stock offering. The company said its secondary public offering of 10 million shares, announced late Monday, priced at $17.50 a share, which was a 6.1% discount to Monday’s closing price of $18.63. The company did not receive any proceeds from the offering, as all of the shares were offered by selling stockholders. The $175 million stockholders raised in the offering represented 9.3% of the consumer-packaged food company’s market capitalization of $1.89 billion at Monday’s close. The offering was announced two sessions after the stock closed at a record $19.20. The stock has soared 44.4% over the past three months through Monday, while the S&P 500
SPX,
+0.30%
has gained 1.1%.