ADT Shares Slide After Apollo Prices Secondary Block at Discounted Range

Apollo moves to fully exit stake; ADT will repurchase a portion of shares using existing buyback authority

By Maya Rios ADT

ADT Shares Slide After Apollo Prices Secondary Block at Discounted Range

ADT

ADT Inc. dropped 6.5% Monday after Apollo Global Management set the pricing for a secondary sale of 102 million ADT shares at $7.30 to $7.55 each, a range at or below ADT's prior close. Apollo is seeking up to $770 million in the transaction, which represents the remaining shares held by entities managed by Apollo affiliates and is expected to close on May 5, 2026. ADT will repurchase 29.1 million shares from the underwriters at the same price Apollo receives, using its existing $1.5 billion repurchase authorization; the company itself will not sell shares or receive proceeds from the offering.

Key Points

Apollo priced a secondary offering of 102 million ADT shares at $7.30 to $7.55, seeking up to $770 million.
ADT will repurchase 29.1 million shares from the underwriters at the same price, funding the buyback from its $1.5 billion repurchase authorization.
Underwriters include Barclays, Citigroup, Morgan Stanley, Goldman Sachs and BTIG; remaining shares may be sold via NYSE brokerage, OTC market, or negotiated transactions.

ADT Inc. (NYSE:ADT) shares fell 6.5% on Monday after Apollo Global Management priced a large secondary offering that places the shares at a discount relative to the prior closing price.

According to reports, Apollo has priced 102 million ADT shares in the secondary at between $7.30 and $7.55 apiece, seeking up to $770 million from the sale. ADT had closed at $7.55 on Friday, meaning the offering is set at or below that level.

The block being offered represents all remaining ADT shares owned by entities managed by Apollo affiliates. The transaction is expected to close on May 5, 2026, and is subject to customary closing conditions.

Separate from the secondary placement, ADT has agreed to repurchase 29.1 million shares from the offering's underwriters at the same price Apollo will receive. The repurchase will be executed under ADT's current $1.5 billion share repurchase authorization. The company will not be selling shares in this transaction and will not receive any proceeds from the secondary offering.

Underwriting for the sale is being led by Barclays, Citigroup, Morgan Stanley, Goldman Sachs and BTIG. Reports state that the underwriters will not collect fees for the shares that ADT repurchases. The remainder of the shares in the secondary may be placed into the market through a variety of channels, including brokerage transactions on the New York Stock Exchange, over-the-counter trades, or negotiated transactions.

The offering marks Apollo's full exit from its stake in ADT. Beyond the pricing, the transaction remains contingent on the usual closing conditions that accompany such securities sales.

Market participants noted the immediate price reaction following the announcement, as the placement at or below the prior close compressed the market's pricing for ADT stock on the day.

Details at a glance:

Shares offered: 102 million
Price range: $7.30 to $7.55 per share
Gross proceeds sought: up to $770 million
ADT repurchase: 29.1 million shares using $1.5 billion authorization
Expected close date: May 5, 2026

Risks

The transaction is subject to customary closing conditions, so completion is not guaranteed - this affects shareholders and market participants.
ADT will not receive proceeds from the secondary offering and is not selling shares, which leaves market supply dynamics and ownership changes in the hands of Apollo and underwriters.
Market price volatility may persist around the placement given the offering is priced at or below the previous close, which can influence short-term trading in the security.

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ADT Shares Slide After Apollo Prices Secondary Block at Discounted Range

Key Points

Risks

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