Target Hospitality shares fell 7.9% in premarket trading Wednesday after the company priced an upsized secondary offering of 14,000,000 existing common shares at $18.50 each. The offering is expected to generate approximately $259 million in gross proceeds for selling stockholders Arrow Holdings S.à r.l. and MFA Global S.à r.l., entities controlled by TDR Capital LLP. Target Hospitality is not selling shares and will receive no offering proceeds. Closing is expected on September 10, 2026, subject to customary conditions, while underwriters have a 30-day option to purchase up to 2,100,000 additional shares. Separately, the company has agreed to repurchase approximately $30 million of shares from the underwriters at the same per-share price, hold them as treasury shares and fund the transaction with cash on hand and borrowings under its ABL Credit Facility.