Safety testing co UL Solutions drops on parent's $975 mln stock sale

Shares of safety testing firm UL Solutions ULS.N down 2.7% before the bell at $77.21 after $975 mln secondary offering priced

Northbrook, Illinois-based co late Weds announced its parent UL Standards & Engagement (ULSE) offloaded 12.5 mln shares at $78

ULS shares tumbled 10.7% to close at $79.38 on Weds after co launched the offering late Tues

Sale reduces ULSE's holdings to about 125.6 mln shares of co's 201 mln total shares outstanding, per the prospectus

Goldman Sachs and JP Morgan are lead bookrunners for offering

A month ago, co posted Q3 rev beat and announced restructuring initiative to reduce expenses

Through Weds close, ULS shares up 59% YTD

UL Solutions went public in Apr 2024 after ULSE sold 33.8 mln shares in IPO priced at $28

5 of 11 analysts rate shares "strong buy" or "buy", 6 rate "hold"; median PT $96, per LSEG data