Sources inform ''Globes'' that Infiniband developerMellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) plans a secondary offering on Nasdaq, possibly on Tuesday. In the shelf prospectus filed with the US Securities and Exchange Commission (SEC) yesterday, the company said that it would issue three million shares.
The underwriters are JP Morgan Securities LLC, Credit Suisse Securities (USA) LLC and Barclays Capital Inc., with Stifel Nicolaus Weisel as the co-manager. The underwriters have an over-allotments offer to buy up to 450,000 additional shares. The company said that it would use the net proceeds for general corporate purposes, including working capital and potential strategic investments.
Based on Mellanox's share price of $35, the company hopes to raise a gross $100 million.
Mellanox's share price rose 1.3% on Nasdaq yesterday to $35.60, giving a market cap of $1.26 billion, but fell 3.1% in after-hours trading following the publication of the shelf prospectus. The share price fell 2% by early afternoon on the TASE today to NIS 123.60.
The offering will boost Mellanox's cash to around $200 million, enough for a large acquisition if it wants. Given founder, chairman and CEO Eyal Waldman's big ambitions, such an acquisition may be in the works. It acquired Israeli rival Voltaire for $218 million in February.
Published by Globes [online], Israel business news - www.globes-online.com - on September 20, 2011
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