Target Hospitality Engages the Market with Secondary Stock Offering Valued at $119 Million

On May 28, 2026, Target Hospitality Corp., renowned as one of North America's leading providers of vertically integrated modular accommodations and value-added hospitality services, disclosed the pricing of its secondary stock offering. This strategic move involves 7,000,000 shares of common stock, which are set to be made available to the public at an offering price of $17.00 per share. With this offering, the total gross proceeds anticipated for the selling stockholders is approximately $119 million, prior to deducting underwriting discounts and commissions.

The shares being offered belong to Arrow Holdings S. à r.l. and MFA Global S. à r.l., both of which are investment entities managed by TDR Capital LLP. Notably, Target Hospitality itself is not a seller in this offering and will not receive any financial benefits from it. The closing of the offering is scheduled for May 29, 2026, pending standard closing conditions. This offering also includes a 30-day option for underwriters to acquire an additional 1,050,000 shares of common stock, which could further boost the total proceeds.

Morgan Stanley & Co. LLC and Deutsche Bank Securities Inc. are taking on key roles as the book-running managers for the offering, while Northland Securities, Oppenheimer & Co. Inc., Stifel, Nicolaus & Company, Incorporated, and Texas Capital Securities serve as co-managers. This structured organization underscores the offering's strategic importance within the market.

The offering is being executed under an existing shelf registration statement under Form S-3, submitted to the Securities and Exchange Commission (SEC) back on April 10, 2019. This registration received its effectiveness on May 16, 2019, and the relevant documents can be accessed through the SEC's official website.

Potential investors are advised that this press release should not be interpreted as an offer to sell, or a solicitation of an offer to buy, any securities from Target Hospitality. The availability of shares is subject to regulatory compliance within jurisdictions where such actions may be deemed unlawful.

Future Outlook and Considerations

Target Hospitality’s announcement comes amid a period of continued growth and transformation for the company. They have successfully established themselves not only in the specialized rental market but also within hospitality services catering to various sectors, including workforce accommodations for critical mineral development and data center infrastructure projects. Furthermore, they are aiming to enhance margins by improving contract servicing within their business lines.

In a market that is consistently evolving, characterized by fluctuating demand and potential economic headwinds, Target Hospitality faces several challenges. These include competition for market share and managing operational costs, against a backdrop of rising inflation and regulatory changes. The company's future performance will undoubtedly hinge upon its ability to seamlessly navigate these complexities while maintaining service excellence and operational efficiency.

The decision to engage in a secondary offering reflects Target Hospitality's proactive approach to positioning itself within the investor community and enhancing liquidity for existing shareholders. It is also a crucial step in facilitating sustained momentum as they implement their strategic initiatives.

As they move forward, the market is eager to observe how Target Hospitality capitalizes on this offering and leverages the capital market to achieve its growth objectives in the coming years.

For investor inquiries, Mark Schuck can be contacted at (832) 702 – 8009 or via email at [email protected] Target Hospitality is geared to create meaningful impacts in the accommodation and hospitality industry, and this offering illustrates a significant step in their growth trajectory.