Constant Contact, Inc. (NASDAQ: CTCT) has filed a registration statement with the SEC to sell 4,390,800 shares of common stock. Almost all of the stock is being sold by insiders as 4,284,339 shares are being sold by the selling stockholders and 106,461 shares are being sold by the company. In fact, the shares being sold by the company are being sold to pay the expenses incurred by it in connection with this offering. If there are any remaining proceeds, they will be used for general corporate purposes.
The company and some of the selling stockholders have granted the underwriters an overallotment option to purchase up to an additional 658,620 shares.
Oppenheimer and Thomas Weisel Partners are listed as joint book-runners for this secondary offering; co-managers are listed as William Blair & Co., Cowen, and Needham.
This company has only been public since October, 2007, so it appears the insiders and backers are taking some of the funds out after the IPO Lock-up expiration. Shares traded above $25.00 after the IPO and they closed at $17.19 yesterday. Since coming public, shares traded as low as $14.67.
When this came public, it was a "very hot IPO" as this rallied significantly on day one. It originally sold 6.7 million shares at $16.00 per share, above the $12.00 to $14.00 range. The float is just about to get a lot bigger.
Jon C. Ogg
March 27, 2008
Jon Ogg produces the Special Situation Investing Newsletter and can be reached at [email protected]; he does not own securities in the companies he covers.
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