Arthur J. Gallagher & Co. Announces Closing of Public Offering of Common Stock

Rhea-AI Summary

Arthur J. Gallagher (NYSE: AJG) has completed its public offering of 30,357,143 shares of common stock at $280.00 per share. The company granted underwriters a 30-day option to purchase up to an additional 4,553,571 shares at the same price. Morgan Stanley & Co. led the offering as lead active book-running manager, with BofA Securities as active book-running manager. The offering was made through an automatically effective shelf registration statement on Form S-3. The company also announced the cancellation of its investor meeting previously scheduled for December 17th.

Positive

• Successfully completed large-scale public offering worth approximately $8.5 billion
• Strong institutional backing with multiple major investment banks as underwriters
• Additional potential proceeds from 30-day option for 4.55M shares if exercised

Negative

• Significant shareholder dilution from issuing 30.36M new shares
• Cancellation of scheduled investor meeting might indicate communication challenges

News Market Reaction – AJG

-0.06%

1 alert

-0.06% News Effect

On the day this news was published, AJG declined 0.06%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

ROLLING MEADOWS, Ill., Dec. 11, 2024 /PRNewswire/ -- Arthur J. Gallagher & Co. (NYSE: AJG) ("Gallagher") today announced the closing of its public offering of 30,357,143 shares of its common stock at a price to the public of $280.00 per share.  In connection with the public offering, Gallagher granted the underwriters a 30-day option to purchase up to an additional 4,553,571 shares of its common stock at the same public offering price.  Morgan Stanley & Co. LLC is acting as lead active book-running manager and BofA Securities, Inc. is acting as active book-running manager for the offering.  Evercore ISI, BMO Capital Markets Corp., Goldman Sachs & Co. LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., Dowling & Partners Securities, LLC, Jefferies LLC, Keefe, Bruyette & Woods, Inc., Piper Sandler & Co., Raymond James & Associates, Inc., RBC Capital Markets, LLC, TD Securities (USA) LLC, Truist Securities, Inc., UBS Securities LLC, Wells Fargo Securities, LLC, William Blair & Company, L.L.C., Nomura Securities International, Inc., and WR Securities, LLC are acting as co-managers for the offering.

The public offering was made pursuant to an automatically effective shelf registration statement on Form S-3 filed with the Securities and Exchange Commission (the "SEC") on December 9, 2024.  A final prospectus relating to the offering dated December 9, 2024 has been filed with the SEC and is available on the SEC's website at http://www.sec.gov.  Copies of the final prospectus relating to these securities may be obtained from (i) Morgan Stanley & Co. LLC, by mail at 180 Varick Street, 2nd Floor, New York, NY 10014, Attention: Prospectus Department; or (ii) BofA Securities, Inc., by mail at NC1-022-02-25, 201 North Tryon Street, Charlotte, North Carolina 28255, Attention: Prospectus Department, or by telephone at (800) 294-1322, or by email at dg.prospectus_requests@bofa.com.

In addition, Gallagher announced that the investor meeting with management, which was previously scheduled on Tuesday, December 17^th from 8:00 am until 12:00 pm, was canceled.

This press release is neither an offer to sell nor a solicitation of an offer to buy any of the common stock or any other security of Gallagher, nor shall there be any sale of the common stock in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About Arthur J. Gallagher & Co.

Arthur J. Gallagher & Co., a global insurance brokerage, risk management and consulting services firm, is headquartered in Rolling Meadows, Illinois.  Gallagher provides these services in approximately 130 countries around the world through its owned operations and a network of correspondent brokers and consultants.

Investors:  Ray Iardella	Media:  Paul Day
VP - Investor Relations	Communications Manager
(630) 285-3661/ ray_iardella@ajg.com	(630) 285-5946/ paul_day1@ajg.com

 

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SOURCE Arthur J. Gallagher & Co.

FAQ

How many shares did AJG offer in its December 2024 public offering?

AJG offered 30,357,143 shares of common stock in its December 2024 public offering, with an additional 30-day option for underwriters to purchase up to 4,553,571 shares.

What was the price per share for AJG's 2024 public offering?

The public offering price was set at $280.00 per share.

Who were the lead underwriters for AJG's 2024 stock offering?

Morgan Stanley & Co. acted as lead active book-running manager, while BofA Securities, Inc. served as active book-running manager for the offering.

What happened to AJG's scheduled December 17th investor meeting?

The investor meeting with management, originally scheduled for December 17th from 8:00 am until 12:00 pm, was canceled.

What is the total potential value of AJG's 2024 stock offering including the underwriter option?

If the underwriter option is fully exercised, the total offering would be approximately 34.91 million shares at $280.00 per share, potentially worth about $9.77 billion.