Palo Alto Networks Slides on Secondary Offering
Internet security firm Palo Alto Networks Inc. (NYSE: PANW) this morning priced a secondary offering of 4.8 million shares at $63 a share, about 4% below last night’s closing price of $65.50. The company will not receive any proceeds from…
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Palo Alto Networks held its initial public offering on July 20, going out at $42 a share, well above the expected range of $34 to $37 a share. The share price peaked at more than $72 in early September.
Early investors and management were subject to a six-month lockup period during which they couldn’t sell their shares on the open market, but the company’s joint book-runners, Morgan Stanley (NYSE: MS) and Goldman Sachs Group Inc. (NYSE: GS) agreed on Monday to release the lock-up restriction early for some shares.
None of the firm’s largest stockholders is selling shares. The largest fraction of the shares on offer is 1.5 million being offered by Globespan Capital Partners. Tenaya Capital is selling 566,000 shares and Nir Zuk, the company’s CTO, is selling 200,000 shares.
Shares of Palo Alto Networks are down about 4.4% this morning at $62.60 in a 52-week range of $51.10 to $72.61.
Paul Ausick
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Paul Ausick has been writing for 247Wallst.com for more than a decade. He has written extensively on investing in the energy, defense, and technology sectors. In a previous life, he wrote technical documentation and managed a marketing communications group in Silicon Valley.
He has a bachelor's degree in English from the University of Chicago and now lives in Montana, where he fishes for trout in the summer and stays inside during the winter.
