Option Care Health Inc. (OPCH) shares are down -2.58% at $20.74 in Wednesday’s premarket session. OPCH stock rose 4.52% to $21.29 at the close of the last trading session. A total of 1.94 million shares traded on the OPCH stock, falling above the average daily trading volume of 1.29 million shares recorded over the past 50 days. Within the past five days, OPCH stock has advanced 3.60%; however, within the last month, it has lost -2.74%.

So far this year, the OPCH stock price is up 36.13 percent and has climbed 11.52% over the last three months. The OPCH stock is currently trading at a price-to-earnings ratio of 443.54. Additionally, OPCH is rated 37.35 on the price to cash flow ratio, and 1.24 on the price to sales ratio. After announcing a secondary offering of its common stock, OPCH stock is losing ground.

Who is offering the OPCH Stock shares?

Option Care Health provides home and alternate site infusion services across the country. The OPCH works compassionately to elevate standards of care for patients with acute and chronic conditions across all 50 states with over 5,000 teammates, including approximately 2,900 clinicians. OPCH is reimagining infusion care for patients, customers and teammates through its clinical leadership, expertise and national scale.

Option Care Health has announced that an affiliate of Madison Dearborn Partners (the “Selling Stockholder”) has agreed to sell 18,000,000 shares of the company’s common stock.

• Underwritten public offering by the selling stockholder, OPCH shares will be offered to the public for $20.25 per share.
• Shares of OPCH common stock to be sold have been increased to 18,000,000 shares from 15,000,000 shares previously announced.
• A 30-day option is also available to the underwriter to purchase an additional 2,700,000 shares of the common stock of OPCH from the selling shareholder.
• Providing all customary closing conditions are met, the offering is expected to close on August 5, 2021.
• The offering will not result in any proceeds for OPCH.
• In relation to OPCH’s current shares outstanding, this sale represents approximately 10.0% (or 11.5% if the underwriter exercises its option to purchase additional shares).
• As a result of the offering, the Selling Stockholder’s ownership interest in OPCH will decrease from 37.7% to 27.7% (or 26.2% assuming the underwriter exercises his option to purchase additional shares).

As part of a previous move:

Walgreens Boots subsidiary Walgreen Co. and Madison Dearborn Partners have recently agreed in principle to allocate all of the selling stockholder’s offering proceeds to Madison Dearborn Partners and other shareholders of selling stockholder. Walgreens thus maintains an indirect financial interest of approximately 21% in Option Care Health (OPCH) following the offering. In connection with the offering of OPCH common stock, Goldman Sachs & Co LLC will act as the sole underwriter.