The share price of Israeli enterprise security company CyberArk Software Inc.(Nasdaq:CYBR) fell sharply on Thursday and Friday after the company began its secondary offering. The share price fell 7% on Thursday and a further 3.25% on Friday to close at $50.04, giving a market cap of $1.48 billion, below the secondary offering price of $51 per share.
Just three weeks ago CyberArk was trading at $70 per share. However, even after the latest fall, the share is still trading at more than 200% above its IPO value six months ago.
CyberArk is putting 4 million shares up for sale in its secondary offering, which only includes an offer to sale by shareholders, and is raising no new money. CyberArk's largest shareholder Jerusalem Venture Partners (JVP) is selling shares worth $115 million and will remain with a 30.3% holding. Goldman Sachs, which will also serve as underwriter for the offering, will sell shares for $53 million, and see its stake fall to 15.8%. Two of the company's executives will sell shares: board member Amnon Shoshani will sell shares worth 416 million and founder and CEO Amnon Mokadi, will sell shares worth $7 million, and remain with shares worth $59 million after the offering.
CyberArk's product is designed for internal enterprise security. The company's information protection is conducted through the management and monitoring of privileged accounts with a high level of authorization allowing access to very sensitive information in order to prevent such information from leaking to someone outside the organization.
Published by Globes [online], Israel business news - www.globes-online.com - on March 15, 2015
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