Frequency Electronics Announces Pricing of Public Offering
Frequency Electronics (NASDAQ: FEIM) priced its previously announced underwritten public offering of 1,739,131 common shares at $57.50 per share, for total gross proceeds of about $100 million.
Rhea-AI Summary
Frequency Electronics (NASDAQ: FEIM) priced its previously announced underwritten public offering of 1,739,131 common shares at $57.50 per share, for total gross proceeds of about $100 million. The company is issuing 1,086,957 new shares, while Edenbrook Value Fund, LP and Edenbrook Long Only Value Fund, LP, affiliates of board member Jonathan Brolin, are selling 652,174 existing shares.
The offering is expected to close on July 30, 2026, subject to customary conditions. FEI granted underwriters a 30‑day option to buy up to 260,869 additional shares (15% of the base deal). According to the company, net proceeds to FEI will support growth opportunities, capital expenditures, working capital and general corporate purposes. FEI will not receive proceeds from selling stockholder shares. Morgan Stanley is lead book‑running manager and Craig‑Hallum is book‑running manager.
Positive
- $100 million gross proceeds targeted from public offering at $57.50 per share
- Primary issuance of 1,086,957 shares provides new capital to FEI
- 30‑day underwriter option for up to 260,869 additional shares
- Stated use of proceeds for growth, capex and working capital
Negative
- Equity dilution from issuance of 1,086,957 new common shares
- Potential further dilution if underwriters exercise 260,869‑share overallotment option
- Selling stockholders offering 652,174 shares without proceeds to FEI
News Explained
If completed, the primary issuance would dilute existing holders, while underwriting fees reduce FEI’s proceeds below gross proceeds.
FEI has priced the offering, but closing remains pending and is expected on
As an underwritten offering, investment banks buy the securities from FEI and resell them, so underwriting fees reduce FEI’s net proceeds below the stated gross amount.
Details
Market reaction after public offering pricing: FEIM -13.20% in the Jul 29 session
In the Jul 29 session, FEIM declined 13.20%, reflecting a significant negative market reaction. Argus tracked a trough of -15.5% from its starting point during tracking. Our momentum scanner triggered 30 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 5.8x the daily average, suggesting significant selling pressure.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
- Total offering shares
- 1,739,131 shares
- Public offering
- Offering price
- $57.50 per share
- Public offering
- Gross proceeds
- $100 million
- Public offering
- FEI shares offered
- 1,086,957 shares
- Primary offering
- Selling stockholder shares
- 652,174 shares
- Secondary offering
- Expected closing date
- July 30, 2026
- Subject to customary closing conditions
- Underwriter option
- 260,869 shares
- 30-day option; 15% of common stock sold
- Registration effectiveness date
- July 21, 2026
- Registration statement declared effective by the SEC
Historical Context
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Multiple aerospace and government contracts totaling approximately $18 million
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Revenue declined and the company reported a fiscal-year operating loss
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Company scheduled its fiscal 2026 financial results conference call
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New contracts and fiscal-year backlog exceeded $100 million
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Company established a $150 million fiscal 2029 revenue target
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Key Terms
underwritten public offering financial
selling stockholders financial
registration statement regulatory
prospectus supplement regulatory
AI-generated analysis. How Rhea-AI works. Not financial advice.
MITCHEL FIELD, N.Y., July 28, 2026 (GLOBE NEWSWIRE) -- Today, Frequency Electronics, Inc. (NASDAQ: FEIM) (“FEI” or the “Company”) announced the pricing of its previously announced underwritten public offering of 1,739,131 shares of its common stock at a public offering price of
Morgan Stanley is acting as lead book-running manager and Craig-Hallum is acting as book-running manager for the offering.
A registration statement relating to these securities was filed with the U.S. Securities and Exchange Commission (the “SEC”) and declared effective on July 21, 2026. Copies of the registration statement can be accessed through the SEC’s website free of charge at www.sec.gov. A preliminary prospectus supplement and an accompanying prospectus relating to and describing the terms of the offering were filed with the SEC and are available free of charge by visiting EDGAR on the SEC’s website at www.sec.gov. When available, copies of the final prospectus supplement and the accompanying prospectus related to the offering can be accessed through the SEC’s website free of charge at www.sec.gov or obtained free of charge from the lead book-running manager for the offering: Morgan Stanley & Co. LLC, Attention: Prospectus Department, 180 Varick Street, 2nd Floor, New York, New York 10014, or by email at prospectus@morganstanley.com.
This press release does not constitute an offer to sell or the solicitation of an offer to buy securities, and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of that jurisdiction.
About Frequency Electronics
Frequency Electronics, Inc. (FEI) is a world leader in precision time and frequency generation technology, which is incorporated into commercial and U.S. Government satellites, Command, Control, Communication, Computer, Intelligence, Surveillance and Reconnaissance (“C4ISR”), and Electronic Warfare (“EW”) systems. Its technology is used for a wide range of space and non-space applications. FEI has received over 100 awards of excellence for achievements in providing high performance electronic assemblies for over 150 space and DOW programs. The Company invests significant resources in research and development to expand its capabilities and markets.
Forward-Looking Statements
Certain statements made in this release that are not statements of historical or current facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including statements regarding FEI’s expectations regarding the completion of the offering. Forward-looking statements involve known and unknown risks and uncertainties and no assurance can be given that the offering will be consummated on the terms described or at all. Completion of the offering and the terms thereof are subject to numerous factors, many of which are beyond the control of FEI, including market conditions, failure of customary closing conditions and the risk factors and other matters set forth in its periodic filings with the SEC. The forward-looking statements included in this press release are made only as of the date of the statement. FEI undertakes no obligation to update or review any forward-looking statements made by management or on its behalf, whether as a result of future developments, subsequent events or circumstances or otherwise.
| Contact information: | Dr. Thomas McClelland, President and Chief Executive Officer; |
| Steven Bernstein, Chief Financial Officer | |
TELEPHONE: (516) 794-4500 EXT.5000
FAQ
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