Why Camping World Stock Plummeted by Nearly 12% Today

Core Viewpoint - Camping World Holdings announced a secondary share issue of nearly 15 million shares at a price of $20.50, leading to a significant drop in its stock price by almost 12$3 lower than the stock price on the day after its quarterly earnings report [2] - The underwriters, led by Goldman Sachs and JPMorgan Chase, have a 30-day option to purchase an additional 2.2 million shares [3] Group 2: Use of Proceeds - Proceeds from the share issuance will be used to acquire over 14.6 million common units from its subsidiary CWGS Enterprises, which will then use the funds for general corporate purposes, including working capital and debt retirement [4] Group 3: Market Reaction - The market reacted negatively to the announcement, as the unconventional method of raising equity through a subsidiary and the low pricing raised investor concerns [5]