Palo Alto Networks, Inc. (NYSE: PANW) is holding up rather well considering that the recent IPO is going to be selling shares. On Friday afternoon we saw a filing that Palo Alto filed to sell up to $225 million worth of common stock.
Why this matters is that the market cap is about $4.2 billion and this implies somewhere close to 4 million more shares coming on the market. This had been one of the top IPOs of 2012 up until September when shares turned lower falling from over $70 down to $62 recently.
The most recent share offering will be through Morgan Stanley, Goldman Sachs, and Citi as the book runners. Co-managers were listed as Credit Suisse, Barclays, UBS, and Raymond James. Venture backers and insiders are selling the shares and none of the proceeds will end up in Palo Alto’s corporate coffers.
Palo Alto shares came public at $42 and the post-IPO range is 2012 has been $51.10 to $72.61. The formal IPO was 6.3 million shares. It is important to realize that the original price range of $34 to $37 was lifted to $38 to $40 before the premium deal priced.
JON C. OGG