UWM Holdings jumped over 25% in premarket trading as it announced intent to accelerate buyback in Lieu

UWM Holdings jumped over 25% in premarket trading as it announcedintent toacceleratebuyback in Lieu.The company announced that SFS Holding Corp, (“SFS”), its principal shareholder, has terminated the previously announced secondary offering of Class A Common Stock and concurrent stock repurchase effective immediately (the “Offering”). The Offering was intended to increase UWMC’s public float by approximately 50%, thereby making it a more liquid, tradable stock for larger indexes and institutional investors, while at the same time utilizing the Company’s buyback authorization to reduce the number of fully diluted shares outstanding. However, the market’s reaction to the Offering resulted in a share price level at which SFS is not willing to sell. With the termination of the Offering, no shares of common stock will be sold by SFS at this time. Instead, the Company intends to accelerate its previously announced buyback program and defer its plans to increase public float to a later date.