Frequency Electronics Inc. Completes $62.5M Stock Offering

What Happened

• Frequency Electronics, Inc. announced it completed an underwritten offering on July 30, 2026 of 1,739,131 shares of common stock at $57.50 per share. The Company sold 1,086,957 shares and certain selling stockholders sold 652,174 shares. Gross proceeds to the Company before underwriting discounts, commissions and offering expenses were approximately $62.5 million.
• The underwriting was conducted under an agreement with Morgan Stanley & Co. LLC as representative. The Company granted the underwriters a 30-day option to purchase up to 260,869 additional shares.

Key Details

• Total shares sold: 1,739,131
  • Company shares (primary): 1,086,957
  • Secondary shares (selling stockholders): 652,174
• Offering price: $57.50 per share
• Gross proceeds to Company: ~ $62.5 million (before fees and expenses)
• Underwriter option: up to 260,869 additional shares, exercisable for 30 days
• Selling stockholders: Edenbrook Value Fund, LP and Edenbrook Long Only Value Fund, LP
• Registration: Shares registered under Form S-3 (File No. 333-297549); offering closed July 30, 2026

Why It Matters

• The offering increases the company’s outstanding shares and immediately raised about $62.5M in gross proceeds for Frequency Electronics, which can affect liquidity and the company’s capital position.
• Secondary shares provided proceeds to the selling stockholders (not to the Company), while any exercise of the underwriters’ option would increase dilution and could raise additional capital for the Company.
• Investors should note the timing (closed July 30, 2026), the potential for further dilution if the option is exercised, and that underwriting fees and expenses will reduce net proceeds.