Investor offloads stake in TI Fluid Systems, shares plummet

Shares in auto parts maker TI Fluid Systems crashed as top investor Bain Capital cashed out stake.

Investor offloads stake in TI Fluid Systems, shares plummet
TI Fluids Systems TIFS

TI Fluid Systems (LSE: IFS) shares have marknosedived on a massive selloff

Bain Capital investment funds dumped a large shareholding in the FTSE 250 auto parts maker on Wednesday, sending its stock into a tailspin. An affiliate of the private equity firm, BC Omega Holdco, sold 50 million shares in TI Fluid Systems at a heavily discounted price of 135p each.

The £67.5 million accelerated bookbuild saw BC Omega's stake in the company reduced from 37% to around 28%. Peel Hunt acted as the sole global coordinator and bookrunner for the discounted share placement to institutional investors.

TI Fluid's share price plunged over 16% in Wednesday's trading, marking its biggest one-day percentage drop since May 2022.

The company itself did not receive any proceeds from the share sale by its top shareholder. Prior to the transaction, TI Fluid Systems' shares closed at 161.6p on Tuesday, the stock was up 74% in the last 12 months.

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