Network processor company EZchip Semiconductor Ltd. (Nasdaq: EZCH) priced its secondary share offering at $10.50 per share. In the offering, the company sold 712,618 shares, and two funds sold a combined 3.15 million shares. The funds are affiliated with Goldman, Sachs & Co. and JK&B Capital.
The funds also granted underwriter Jefferies & Company, Inc., an option to purchase an additional 472,565 ordinary shares, and EZchip granted Jefferies an option to purchase an additional 106,893 ordinary shares, in each case, to cover over-allotments, if any, within 30 days at the public offering price, less underwriting discounts and commissions.
If Jefferies exercises its over-allotment in full, the funds will have sold all their shares of EZchip. EZchip will not receive any proceeds from the sale of the ordinary shares by the Selling Shareholders.
Shares in Yokneam-based EZchip fell 8.4% yesterday on Nasdaq, closing at $11.55. Its market cap is $269.77 million
The offering is scheduled to be completed on December 22, 2009.
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2009
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