Orkin parent Rollins' stock drops after 38.7 million-share public offering prices at an 8% discount

Shares of Rollins Inc. (ROL) dropped 6.3% toward a six-month low in premarket trading Thursday, after the parent of the Orkin pest-control brand announced a public offering of 38.72 million shares by a selling shareholder. The offering, which was announced late Wednesday, is by LOR Inc., which is a member of the control group that owns more than half of the outstanding shares. The number of shares in the offering represents 7.9% of the shares outstanding as of July 17. The company said Thursday that the offering priced at $35.00 a share, which is 8.1% below Wednesday's closing price of $38.08. Rollins said it will not receive any proceeds from the offering, as it is not selling any shares. The stock has lost 7.5% over the past three months through Wednesday, while the S&P 500 has gained 4.6%.

-Tomi Kilgore

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09-07-23 0652ET

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