SciQuest, Inc. (NASDAQ: SQI) announced back on the evening of March 9 that it was raising cash via a stock offering. The original sale was supposed to be just over 3.935 million shares with 1 million of those shares being sold by the company and the rest coming from stockholders. Now comes the formal offering and the size is for 4.718 million shares of common stock.
When the company gave word of the sale earlier this month its stock was at $15.04 and shares fell to $14.26 the next day, $13.63 the following day, and $13.00 the day after that. Shares have come back and even traded as high as $16.26 before yesterday’s close of $14.60. The formal price came in at $14.25 per share. The size of the offering was raised but the company is still only selling 1 million shares.
Stifel Nicolaus Weisel is the sole book-runner, and co-managers are William Blair, JMP Securities, Pacific Crest, and Canaccord Genuity. These underwriters have a overallotment option of up to 707,700 shares to cover overallotments. SciQuest will receive approximately $12.9 million in net proceeds after this offering, but that would be about $15 million if the overallotment option gets exercised in full.
SciQuest is a provider of procurement software to colleges, drugmakers and governments. Its shares have traded in a post-IPO range of $10.50 to $16.26 since its IPO of 6 million shares at $9.50 per share back in September. This offering is one that came close to the peak of shares since the IPO and it will effectively add a considerable amount of shares to the float. Its average volume has come down to under 30,000 shares, although it is likely that this large offering may change that at least in the near-term.
JON C. OGG
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