Holley drops after top shareholder's stake sale priced

Shares of auto parts maker Holley HLLY.N down 3% before the bell to $2.90 after secondary offering priced

Bowling Green, Kentucky-based Holley late Weds announced sale of 14 mln shares by private equity firm Sentinel Capital Partners

Offering price of $2.75 is 8% discount to stock's last close

HLLY shares on Weds ultimately tumbled 18.5% for their biggest daily drop since Feb 2023 after co launched the offering

Sale would take Sentinel's holdings from 33.8% to 20.5% stake, if offering's full overallotment option is exercised, p er the prospectus filing

Holley has ~120.5 mln shares outstanding for $360 mln market cap

JP Morgan and Jefferies are lead bookrunners for the offering, joined by William Blair and Canaccord Genuity

Through Weds, HLLY shares up ~50% this quarter, leaving them down 1% YTD

* 6 of 8 analysts covering HLLY rate stock "strong buy" or "buy" and 2 rate "hold"; median PT is $3.75, LSEG data reflects