Frequency Electronics Prices Public Offering at $57.50 Per Share

Frequency Electronics, Inc. (NASDAQ: FEIM), a prominent manufacturer of precision timing and frequency control products, announced on July 28, 2026, the pricing of its previously disclosed underwritten public offering at $57.50 per share. The offering involves a total of 1,739,131 shares of common stock, aiming to raise gross proceeds of approximately $100 million.

Under the terms of the offering, Frequency Electronics will issue 1,086,957 new shares, generating approximately $62.5 million in proceeds for the company. Concurrently, Edenbrook Value Fund, LP and Edenbrook Long Only Value Fund, LP, affiliates of board member Jonathan Brolin, will act as selling stockholders, offering 652,174 existing shares. It is important to note that Frequency Electronics will not receive any proceeds from the shares sold by these selling stockholders. The closing of the offering is anticipated on July 30, 2026.

Morgan Stanley is serving as the lead book-running manager, with Craig-Hallum Capital Advisors acting as a book-running manager for the offering. Furthermore, Frequency Electronics has granted the underwriters a 30-day option to purchase up to an additional 260,869 shares of common stock at the public offering price, less underwriting discounts and commissions, often referred to as a greenshoe option.

This public offering is taking place at a price below the company's closing share price of $70.64 on July 27, 2026, which has drawn investor attention. The net proceeds received by Frequency Electronics from the offering are intended for capital expenditures, working capital, and other general corporate purposes related to funding additional growth opportunities. This capital infusion is expected to bolster the company's position in critical sectors such as defense, aerospace, and telecommunications.

Market analysts observe that the company's current price-to-sales (P/S) ratio of 10.29, significantly higher than its historical median of approximately 1.9x, suggests that the market is pricing in substantial future growth despite the company's current unprofitability and negative cash flow. This offering is seen as a strategic move to finance growth initiatives and solidify its market standing. However, the issuance of new shares will result in some dilution for existing shareholders.