The third public offering by Israeli information security company CyberArk Software Inc.(Nasdaq:CYBR) is nearing the home stretch. The company yesterday revised its prospectus submitted to the US Securities & Exchange Commission (SEC), which includes the exact number of shares to be issued and the number to be sold by some of its parties at interest. The company also stated which of its parties at interest would convert his shares into cash.
CyberArk held its IPO on Nasdaq in September 2014 at $16 a share. Rather quickly, backed by the general capital market surge, the share tripled in value, and last March, the company conducted an offer for sale at $51 a share. The share was as high as $70.48 at one point, before profit taking put it down to $68.65, a return of 329% on the IPO share price and 35% on the price in the company's secondary flotation. The company's market cap currently stands at $2.1 billion, only 2.6% below its peak.
Incidentally, despite the pressure that ordinarily would have been created on the share by the looming flotation, the CyberArk share added 13% to its value over the past week, among other things, following another cyber attack from China on US information systems (according to recent reports).
CyberArk plans to issue 900,000 new shares, thereby raising $62 million, at a time when the company already has $191.7 million in cash.
Company shareholders will sell four million shares for $275 million, putting the total volume of the offering at $336 million.
This offering, as indicated by a list of the company's known shareholders, was designed for three shareholders: Jerusalem Venture Partners (JVP), which will sell most of the shares being offered, receiving $195 million; Vertex Venture Capital, which will sell shares for $57 million; and CyberArk director Amnon Shoshani, who will sell shares for $23 million.
JVP was founded by MK Erel Margalit (Zionist Union), while JVP general partner and CyberArk chairman Gadi Tirosh represents the fund in the company.
JVP recently posted another cyber exit when Beer Sheva-based company CyActive was sold to US company PayPal for $60 million and became the basis for PayPal's cyber center in Israel.
Investment bank Goldman Sachs and CyberArk management, including founder and CEO Udi Mokady, are not taking part in the offer for sale. Mokady has a 3.2% stake in the company with a current value of $67 million. Goldman Sachs has been the leading underwriter in all the CyberArk's offerings to date, and will be an underwriter in the upcoming flotation also.
Published by Globes [online], Israel business news - www.globes-online.com - on June 9, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015