Keurig Dr Pepper Announces Major Share Offering and Repurchase, Aiming to Boost Shareholder Value

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Keurig Dr Pepper (KDP) Announces Stock Offering Price

Our sources confirm that Keurig Dr Pepper Inc., a leading presence in the North American beverage sector, has publicly unveiled the offering price of its shares, which are to be sold at $29.10 each with over 86 million shares available.

Morgan Stanley’s Additional Purchase Option

The share offering introduced includes a possible option for underwriter, Morgan Stanley, to acquire up to an additional 13 million shares, which can be exercised within 30 days from the offering date.

KDP Stock Buyback and Repurchase Authorization

In a strategic move by KDP, the company intends to repurchase 35 million shares. This decision comes as part of a larger plan under KDP’s $4 billion share repurchase authorization. Following these transactions, around $1.8 billion of this authorization remains.

The Role of JAB in this Offering

Should Morgan Stanley exploit its additional purchase option to the fullest extent, JAB, the vendor in this offering, would still retain about 21% of KDP’s common stocks. This move would increase KDP’s public float to about 79%. Further, the remaining shares held by JAB will be subject to a lock-up period of 180 days.

Offering’s Success Dependents

The offering’s successful completion is reliant on a proficiently filed registration statement with the U.S. SEC, which was submitted on August 19, 2022.

About Keurig Dr Pepper

Keurig Dr Pepper, a company boasting over $14 billion in annual revenue and a robust workforce of 28,000, proudly holds, licenses, or partners with more than 125 brands. These brands include heavy-hitters such as Keurig®, Dr Pepper®, and Canada Dry®.

Forward-looking Statements from KDP

It is worth noting that the company has also emitted future-oriented statements, which are susceptible to uncertainties and may deviate from actual future results. As per standard procedure, KDP is under no obligation to update these statements unless mandated by law.