Form 4: Apollo Global Management Sells 56 Million ADT Shares in Public Offering

Apollo Global Management has sold 56 million shares of ADT Inc. common stock at $7.20 per share through an underwritten public offering.

Summary

• Apollo Management Holdings GP, LLC, along with affiliated entities, reported the sale of 56,000,000 shares of ADT Inc. common stock on October 30, 2024.
• The shares were sold at a price of $7.20 per share.
• The sale was conducted through an underwritten public offering.
• The Apollo Stockholders, Prime Security Services TopCo (ML), L.P. and Prime Security Services TopCo (ML II), L.P., sold 52,329,203 and 3,670,797 shares respectively.
• Following the transaction, Apollo and its affiliates continue to beneficially own 367,550,366 shares of ADT Inc.

Sentiment

Score: 5

Explanation: The document itself is neutral, reporting a transaction. The sentiment is based on the fact that a large shareholder is reducing their position, which could be interpreted as slightly negative, but it's also a normal part of investment cycles.

Industry Context

This transaction reflects a significant secondary offering by a major shareholder in the security services industry. Such sales can create short-term price volatility but also provide increased liquidity for the stock.

Comparison to Industry Standards

• Comparing this transaction to similar secondary offerings in the security services sector, the size of the offering (56 million shares) is substantial and could be compared to previous offerings by companies like Tyco before its split or more recent offerings by peers like Alarm.com.
• The pricing of $7.20 per share would be evaluated against ADT's historical trading range and analyst valuations to determine if it represents a discount or premium compared to industry benchmarks.
• The remaining ownership stake of 367,550,366 shares indicates Apollo's continued significant investment in ADT, similar to private equity firms' long-term holdings in other portfolio companies.

Stakeholder Impact

• Shareholders may experience short-term price fluctuations due to the increased supply of shares.
• Employees are unlikely to be directly affected by this transaction.
• Customers and suppliers should not be directly impacted.

Key Dates