Maybe a lot of shares were shorted yesterday morning at above $12.60, and those traders (hedge funds?) will take their profit ASAP and get out. ARCP is heavily institutionally owned and apparently there was a lot of "deal making" yesterday; those shares would be sold at the agreed upon amount.
Regardless, you are right: Underwriters are making big bucks on this. If the offering price is $12, then after discounts and fees, they are paying closer to $11.80. If they sold all 120 million at $12.20 (hypothetical example), they would make a quick $48 million in profit. ;-)
The question we shareholders should be asking is what are they going to do with all this money? They bought Red Lobster for $1.5, but paid for that by selling malls for $1.9. They got $400 cash to work with from that. Now the 120 million shares will net them something like $1.4 billion -- which gives them about $1.8 billion to work with. That's a lot of money for a big acquisition. Are they planning to buy someone (e.g. GOOD)? That would be sweet.
8mln shares have changed hands BEFORE the open block trades of 5k - 10k flashing by my screen but no 100k trades. In the time it took me to write this message another 125k shares changed hands. I do not see this as a good sign. The bid ask spread is a penny before the market opens.
Many can not see the forest through the trews but management can. This was a move that will benefit the company in the future. The shares will stabilize and start moving up slowly over the next two years. You need
A long term out look if you are an owner of this stock. Weak hands have been taken out and in the next two to three years the stock will hit a new high. The dividend looks secure. I know that buyers at $17.00 are disappointed but some investors pushed this stock up to fast too soon. I am buying more now to average down my cost just like other long term investors. DD. If your not happy with this stock move on and use your energy in a positive way and not negative. IMHO.