Mellanox raises $95m in secondary offering

The Inifiband developer's share price fell 10.2% on Nasdaq yesterday.

Inifiband developer Mellanox Technologies Ltd. (Nasdaq:MLNX; TASE:MLNX) raised a gross $95 million in its secondary offering of three million shares at $31.75 per share on Nasdaq yesterday. Net proceeds will total $90.5 million if the underwriters do not exercise their over allotment options to buy an additional 450,000 shares.

Mellanox's share price fell 10.2% on Nasdaq yesterday to $31.96, giving a market cap of $1.13 billion, and fell 1.5% at the opening on the TASE today to NIS 123.10.

"Motley Fool" correspondent Travis Hoium wrote last night, "Shares often fall on word of an offering, but in this case the market is assuming there's virtually no benefit to the offering. Since details are scant on how working capital or possible investments would work, it's hard to quantify a benefit, but I think the move is a little overdone today. I'm not terribly excited about Mellanox's value, trading at 20 times forward earnings, but if this offering leads to more growth, then it could end up being a good long-term move."

Published by Globes [online], Israel business news - - on September 21, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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